PROBLEMS  OF  CITY  GOVERNMENT 


PROBLEMS   OF 
CITY   GOVERNMENT 


By 

L.  S.  ROWE,  PH.D.,  LL.D. 

PROFESSOR   OF   POLITICAL   SCIENCE 
UNIVERSITY   OF   PENNSYLVANIA 


D.    APPLETON    AND    COMPANY 
NEW    YORK  MCMVIII 


COPYRIGHT,  1908,  BY 
D.  APPLETON  AND  COMPANY 


Published  October,  1908 


TO   THE   MEMORY 
OF 

MY    FATHER 

THIS   VOLUME   IS  AFFECTIONATELY 
DEDICATED 


1491086 


PREFACE 


THE  purpose  of  this  volume  is  to  present  an  analysis 
of  the  general  principles  involved  in  city  growth.  The 
rapid  development  of  our  large  cities  has  a  far  deeper 
significance  than  the  administrative  problems  which  they 
present.  Profound  changes  in  social  structure  are  di- 
rectly traceable  to  the  increasing  aggregation  of  popu- 
lation. In  this  volume  an  attempt  has  been  made  to 
ascertain  the  nature  of  these  changes. 

My  thanks  are  due  to  Mrs.  Morris  Jastrow,  Jr.,  for 
the  careful  reading  of  the  manuscript.  I  also  desire  to 
express  my  obligation  to  my  colleagues,  Dr.  Simon  N. 
Patten,  Dr.  Emory  R.  Johnson,  Dr.  James  T.  Young, 
Dr.  William  Draper  Lewis,  and  Mr.  Murray  Gross,  for 
many  kindly  criticisms  and  stimulating  suggestions. 

L.  S.  R. 

UNIVERSITY  OF  PENNSYLVANIA, 
July,  1908. 


INTRODUCTION 


THE  historian  of  American  political  institutions  will 
probably  designate  the  last  quarter  of  the  nineteenth 
century  as  the  period  of  municipal  experimentation. 
The  history  of  municipal  institutions  during  this  period 
negatives  many  of  the  accepted  views  of  Anglo-Saxon 
conservatism.  Changes  of  a  radical  nature  have  been 
accepted  with  an  ease  and  readiness  departing  widely 
from  the  traditions  of  our  political  life.  Any  attempt 
to  explain  this  seeming  paradox  with  the  statement  that 
American  people  are  more  open  to  change  in  their  mu- 
nicipal than  in  their  State  and  national  institutional  life, 
begs  rather  than  answers  the  question.  An  analysis  of 
the  conditions  of  city  life  will  show  the  presence  of 
causes,  deeply  rooted  in  our  political  system,  which 
fully  explain  the  prevailing  uncertainty  as  to  the  most 
effective  organization  of  the  municipality,  as  well  as  the 
great  divergence  of  opinion  on  some  of  the  fundamental 
questions  of  municipal  policy.  We  have  reached  a  point 
at  which  further  progress  has  become  dependent  upon 
the  clear  recognition  of  these  causes.  To  determine  their 
nature  and,  if  possible,  suggest  the  line  of  progressive 
evolution  is  the  purpose  of  this  book. 


CONTENTS 


CHAPTER  PAGE 

I. — THE  CITY  IN  HISTORY 1 

II. — THE  ANCIENT,  THE  MEDIAEVAL,   AND  THE  MODERN 

CITY 14 

III. — THE  NATURE  OF  THE  MUNICIPAL  PROBLEM       .        .  44 

IV. — THE  SOCIAL  CONSEQUENCES  OP  CITY  GROWTH  .       .  62 

V. — THE  POLITICAL  CONSEQUENCES  OF  CITY  GROWTH     .  96 
VI. — THE   POSITION   OF  THE    CITY    IN   THE   AMERICAN 

POLITICAL  SYSTEM 115 

VII. — THE  LEGAL  POWERS  OF  THE  MUNICIPALITY      .       .  141 

VIII. — THE  ORGANIZATION  OF  THE  MODERN  MUNICIPALITY  167 
IX. — CITY    GOVERNMENT    AND    AMERICAN    DEMOCRATIC 

IDEALS 194 

X. — THE  RELATION  OF  THE  CITY  TO  PUBLIC  UTILI- 
TIES      208 

XL — THE  MUNICIPALITY  AND  THE  GAS  SUPPLY,  AS  ILLUS- 
TRATED BY  THE  EXPERIENCE  OF  PHILADELPHIA    .     241 

XII. — FUNDAMENTAL  PRINCIPLES  INVOLVED  IN  MUNICIPAL 

OWNERSHIP 271 

XIII. — MUNICIPAL  OWNERSHIP  AND  OPERATION  OF  STREET 

RAILWAYS  IN  GERMANY 281 

XIV. — MUNICIPAL  OWNERSHIP  AND  OPERATION:  THE  VALUE 

OF  FOREIGN  EXPERIENCE  .  330 


PROBLEMS  OP  CITY   GOVERNMENT 


CHAPTER   I 

THE    CITY   IN    HISTORY 

IN  every  system  of  social  philosophy  from  Aristotle 
to  Spencer  the  relation  of  city  growth  to  national  prog- 
ress has  occupied  an  important  place.  While  the  diver- 
sity of  interpretation  becomes  less  marked  with  the  more 
recent  writers,  we  are  still  far  from  a  consensus  of 
opinion. 

The  interest  of  the  philosophers,  as  that  of  the  people 
of  ancient  Greece  and  Rome,  was  centered  in  the  city. 
Beyond  its  limits  life  was  stunted  and  incomplete. 
With  the  simpler  concept  of  life  which  ushers  in  the 
Middle  Ages  a  reaction  against  the  conventionality  and 
artificiality  of  city  life  makes  itself  felt.  The  city  is 
looked  upon  as  the  center  of  vice  and  crime  rather  than 
as  the  focus  of  the  elevating  and  ennobling  pleasures. 
"  Return  to  nature,"  which  had  been  the  cry  of  the 
eighteenth  century  as  well  as  of  the  sixth,  expresses  the 
revolt  against  the  excesses  to  which  the  temptations  of 
city  life  had  led.  Not  until  the  changes  accompanying 
the  industrial  revolution  had  demonstrated  that  economic 

1 


2         PROBLEMS    OF   CITY    GOVERNMENT 

progress  and  city  growth  were  connected  as  cause  and 
effect  do  we  find  a  marked  change  of  attitude.  With 
the  evolutionary  philosophy  of  the  present  century  the 
city  is  again  given  a  position  of  importance  among  the 
factors  of  advancing  civilization. 

If  we  turn  from  the  interpretation  of  philosophers 
to  the  facts  of  historical  development,  it  is  evident  that 
concentration  of  population  is  a  primary  requisite  to 
advancing  civilization.  The  temptations  and  dangers 
which  city  growth  involves  are  those  incident  to  prog- 
ress. That  nations  have  succumbed  to  such  temptations 
is  merely  an  illustration  of  the  fact  that  every  change 
in  the  conditions  of  life  brings  with  it  a  new  strain  upon 
national  character  requiring  increased  self-control  and 
discrimination. 

Throughout  the  history  of  civilization  we  can  readily 
trace  the  close  relation  between  the  concentration  of  pop- 
ulation and  the  development  of  the  arts  and  sciences. 
The  close  association  of  city  life  first  makes  possible 
division  of  labor,  and  with  division  of  labor  comes  in- 
creased productive  power.  Every  advance  in  productive 
power  creates  new  wants  and  involves  new  possibilities 
of  enjoyment.  In  the  earlier  civilizations  menial  duties 
were  performed  by  slaves,  thus  permitting  the  develop- 
ment of  an  artisan  class  to  supply  the  wealthy  and 
leisure  classes  with  comforts  and  luxuries.  The  pos- 
sibility of  leisure,  which  becomes  a  reality  through 
division  of  labor,  opens  new  avenues  of  intellectual 


THE    CITY   IN    HISTORY  3 

development.  We  speak  of  the  country  as  the  best 
place  for  meditation  and  reflection,  but  constantly  lose 
sight  of  the  fact  that  it  is  "  the  crowd,  the  hum,  the 
shock  of  men  "  that  sharpens  the  intellect,  develops 
inventive  genius,  stirs  commercial  activity,  and  arouses 
the  spirit  of  cooperation. 

The  primary  incentive  to  intellectual  advance  comes 
from  the  city.  For  the  mass  of  the  population  a  con- 
stant stimulus  is  necessary  to  assure  even  a  small  amount 
of  intellectual  activity.  Left  to  himself  the  individual 
rapidly  sinks  to  the  intellectual  stagnation  character- 
istic of  isolated  rural  districts.  The  constant  contact 
of  mind  with  mind,  which  can  be  obtained  only  in  the 
city,  is  necessary  to  any  general  intellectual  advance. 
The  social  life  of  our  modern  cities  clearly  shows  that 
in  the  great  majority  of  cases  the  incentive  to  intel- 
lectual effort  comes  from  without;  the  desire  to  imitate 
some  person  or  group  of  persons  who  have  acquired  a 
commanding  position  in  the  social  circle  to  which  they 
belong.  It  is  only  within  recent  years  that  we  have 
come  to  appreciate  the  full  importance  of  this  principle 
of  imitation  in  progressive  as  well  as  in  regressive  evo- 
lution. The  growth  of  custom  is  but  one  of  its  appli- 
cations. Bagehot  was  the  first  clearly  to  perceive  the 
far-reaching  importance  of  this  factor  in  making  possi- 
ble concerted  action  and  in  establishing  social  order.1 
But  custom  presupposes  the  close  association  of  a  con- 

1  Bagehot,  "Physics  and  Politics,"  Chap.  V. 


4         PROBLEMS    OF    CITY    GOVERNMENT 

siderable  number  of  persons,  whether  it  be  the  primi- 
tive family  or  the  more  highly  organized  modern  com- 
munity. 

The  limitations  of  a  civilization  devoid  of  cities  are 
well  illustrated  in  the  history  of  the  early  Aryans,  of 
which  Ihering  l  has  given  us  a  masterly  analysis.  Their 
slow  advance  was  due  to  peculiar  economic  conditions, 
distinctly  unfavorable  to  city  growth.  A  people  of 
shepherds  cannot  found  cities;  their  occupation  is  in- 
consistent with  the  concentration  of  population  neces- 
sary to  city  life.  The  fact  that  the  parent  stock  of 
the  Indo-Europeans  did  not  reach  even  the  agricultural 
stage  explains  their  inability  to  advance  beyond  the  vil- 
lage as  the  highest  form  of  social  organization.  Even 
as  late  as  the  time  of  Tacitus  the  Teutons  had  not 
advanced  to  the  city  stage.  Ihering  truly  says  that  no 
progressive  people  that  has  once  made  this  tremendous 
stride  toward  a  higher  civilization  would  take  the  step 
backward  to  a  lower  type  of  organization.  The  word 
' '  city  ' '  is  unknown  to  the  Sanskrit  tongue.  Its  nearest 
equivalent — vasiu — means  "  abode,  domicile,  place  of 
habitation."  Furthermore,  each  of  the  Indo-Germanic 
tongues  has  a  different  term  for  ' '  city. ' '  Urban  growth, 
therefore,  must  have  been  subsequent  to  the  splitting 
of  the  parent  stock  into  separate  nations. 

We  are  apt  to  underrate  the  importance  of  the  tran- 
sition from  the  village  to  the  city  economy.  It  consti- 

1  Ihering,  "Evolution  of  the  Aryan." 


THE    CITY    IN    HISTORY  5 

tutes  the  most  important,  and,  to  the  minds  of  many,  the 
final  step  in  the  progress  of  civilization.  In  all  the 
nations  of  Western  Europe  the  city  represents  the  high- 
est type  of  social  organization.  The  nature  of  the  forces 
determining  this  transition  from  the  village  to  the  city 
economy  has  been  the  subject  of  endless  dispute  among 
historians.  According  to  one  school,  led  by  Fustel  de 
Coulanges,1  the  closer  association  necessary  to  the  devel- 
opment of  city  life  was  made  possible  through  the  adop- 
tion of  a  common  religion.  Community  of  religious 
worship  constituted  the  basic  civic  bond.  "  The  tribes 
that  united  to  form  a  city  never  failed  to  light  a 
sacred  fire  and  to  adopt  a  common  religion."  An- 
other and  more  recent  interpretation  is  that  advanced 
by  Ihering.2  According  to  this  view,  the  city  was 
originally  the  fortified  place  which  served  as  a  refuge 
for  the  surrounding  agricultural  population  in  periods 
of  danger. 

From  our  present  knowledge  of  the  conditions  of  life 
in  primitive  communities,  it  is  evident  that  Ihering 's 
explanation  strikes  closer  to  the  root  of  the  problem. 
Community  of  religious  worship  was  the  result  of  cer- 
tain definite  economic  and  social  needs ;  a  necessary  inci- 
dent to  the  closer  cooperation  which  city  life  demanded. 
While  common  religious  ties  usually  accompanied  the 

1  Fustel  de  Coulanges,  "The  Ancient  City,"  English  edition, 
p.  167. 

a  "Evolution  of  the  Aryan." 
2 


6          PROBLEMS    OF    CITY    GOVERNMENT 

founding  of  the  city,  it  is  not  the  cause  to  which  con- 
centration of  population  is  to  be  ascribed. 

The  early  history  of  the  Semites  furnishes  abundant 
testimony — most  of  which  is  cited  by  Ihering — that  the 
fortified  center  always  accompanied  increasing  density 
of  population,  and  that  in  a  great  many  instances  it  was 
within  the  walls  of  the  fortified  inclosure  that  the  city 
first  developed.  Just  as  the  towns  of  the  tenth  and 
eleventh  centuries  grouped  themselves  under  the  pro- 
tection of  some  fortified  castle,  so  the  cities  of  the  early 
Semites  were  nothing  more  than  walled  inclosures  to 
which  men,  women,  and  children  fled,  and  in  which 
household  goods  were  stored  and  cattle  corralled  at  the 
signal  of  an  approaching  foe.  From  a  mere  place  of 
refuge  this  walled  inclosure  gradually  became  a  place 
of  residence;  at  first  for  a  few  artisans,  then  for  all 
those  whose  estates  were  nearest  the  fortifications. 

This  explanation  throws  light  on  the  institutional 
changes  accompanying  increased  density  of  population, 
but  gives  no  clew  to  the  nature  of  the  forces  determin- 
ing such  aggregation.  Upon  this  point  the  researches 
of  Geiger  furnish  most  valuable  information.1  His 
study  of  the  Avesta  people  shows  that  to  the  early 
Iranians  fixed  habitation  was  "  the  beau  ideal  of  good 
fortune,  of  rest  and  of  peace."  Until  the  transition 
from  the  nomadic  state  to  one  of  fixed  settlement  was 

1  Geiger,  "Civilization  of  the  Eastern  Iranians  in  Ancient  Times," 
vol.  i,  Chap.  IV. 


THE    CITY    IN    HISTORY  7 

effected,  the  growth  of  towns  was  out  of  the  question. 
Stability  of  settlement  is  not  sufficient,  however,  to 
account  for  city  growth.  With  it  there  must  be  com- 
bined certain  physical  conditions  favorable  to  proxim- 
ity. Mountainous  regions,  for  instance,  are  distinctly 
unfavorable  to  concentration  of  population.  The  land 
fitted  for  cultivation  is  restricted  in  extent,  while  in- 
dividual holdings  are  usually  separated  from  one  an- 
other by  regions  of  forest  and  pasture.  On  the  other 
hand,  under  the  conditions  of  primitive  civilization, 
perfectly  flat  country  is  hardly  less  unfavorable  to  city 
growth.  It  is  particularly  adapted  to  the  cattle  raising 
of  nomadic  tribes. 

The  combination  of  physical  conditions  favorable  to 
town  growth  is  well  illustrated  by  the  early  town  com- 
munities of  eastern  Iran.  They  occupied  the  oases  on 
the  banks  of  streams  with  the  mountains  on  one  side 
and  the  desert  plains  on  the  other.1  Land  thus  situated 
is  fertile  and  requires  little  draining.  Extending  along 
the  river  valleys  it  is  sufficient  in  extent  to  support  a 
large  population.  Furthermore,  the  exposure  to  the 
inroads  of  the  nomadic  tribes  of  the  steppes  was  a  con- 
stant menace  to  the  safety  of  the  agricultural  popula- 

1  "Andkhui,  Shibarghan,  and  more  particularly  Mero,  are  towns 
which  owe  their  existence  to  oases.  The  tracts  between  the  flat 
land  and  the  mountains  are  held  by  Kunduz,  Khulin,  Balkh,  and 
Sarakhsh.  Siripul,  Mairxane,  and  Herat  lie  in  broad  and  easily  acces- 
sible river  valleys,  and  indeed,  just  in  parts  where  the  valleys  begin  to 
narrow."  Geiger,  op.  cit.,  vol.  i,  p.  236. 


tion,  and  made  cooperation  and  closer  association  for 
mutual  protection  absolutely  necessary.  These  fertile 
areas  along  the  river  valleys  soon  became  the  foci  of 
trading  routes  which  contributed  considerably  to  their 
growth.  This  was  also  true  of  the  communities  of 
Greece,  where  the  "  agora  "  constituted  the  central  fea- 
ture of  the  town. 

In  the  Iranian  communities,  however,  commerce  with 
other  districts  was  unimportant.  The  main  occupations 
were  cattle  raising  and  agriculture.  As  Geiger  says: 
' '  Towns  where  houses  are  ranged  one  close  to  the  other 
in  regular  streets,  where  the  profession  of  tradesmen  is 
held  in  the  same  honor  as  that  of  agriculturists,  yea,  even 
surpasses  the  latter,  and  where  commerce  and  mercan- 
tile pursuits  flourish;  such  were  unknown  to  the  Avesta 
people.  ..."  If ,  on  the  other  hand,  we  define  the  town 
as  an  inclosed  and  fortified  settlement,,  constantly  in- 
habited in  all  its  parts,  of  larger  extent  and  with  more 
numerous  inhabitants,  the  existence  of  townlike  settle- 
ments among  the  Avesta  people  is  at  least  probable.  In 
that  case  the  fortified  village  and  the  town  properly 
so  called  differ  only  with  respect  to  their  dimensions.1 

Ihering's  explanation  thus  serves  to  supplement  and 
enrich  that  offered  by  Geiger.  The  one  gives  us  the 
stages  in  the  development  of  town  life,  the  other  an 
analysis  of  the  forces  determining  such  development. 
There  is  abundant  evidence  that  the  agricultural  com- 

1  Geiger,  op.  cit.,  vol.  i,  p.  240. 


THE    CITY   IN   HISTORY  9 

munities  endeavored  to  protect  themselves  against  the 
inroads  of  unfriendly  tribes  by  building  towers  and 
walled  inclosures,  and  that  these  walled  inclosures  ulti- 
mately became  the  habitation  of  a  large  portion  of  the 
population.  In  some  cases  the  walled  inclosure  was  a 
short  distance  from  the  village,  in  others  a  portion  of 
the  village  itself  was  separated  by  intrenchments.  The 
transition  from  village  to  town  was  usually  accompanied, 
however,  by  the  definite  marking  off  of  a  particular  area 
within  a  fortified  inclosure. 

It  required  many  centuries  to  make  fully  apparent 
the  radical  changes  which  this  new  form  of  association 
was  destined  to  work  in  the  conditions  of  national  life 
and  thought.  The  fundamental  political  ideas  upon 
which  modern  governmental  organization  rests,  the  char- 
acteristic features  of  our  economic  activity,  the  higher 
standards  of  social  intercourse  which  distinguish  mod- 
ern from  primitive  society — all  are  based  upon  con- 
ditions for  the  development  of  which  the  growth  of  the 
city  was  a  prerequisite. 

The  idea  of  territorial  attachment,  which  is  at  the 
root  of  our  modern  idea  of  patriotism,  was  greatly 
strengthened  by  the  influence  of  city  life.  It  is  true 
that  the  origin  of  the  idea  is  found  in  the  changes  inci- 
dent to  the  transition  from  the  pastoral  to  the  agri- 
cultural stage.  We  are  prone  to  forget,  however,  that 
one  of  the  most  important  factors  in  the  development 
of  agriculture  was  proximity  to  the  city.  Until  new 


market  possibilities  are  developed  the  amount  of  labor 
expended  upon  the  soil  is  comparatively  small,  and  the 
attachment  to  any  particular  locality  is  correspondingly 
weak.1  Strong  territorial  ties  are  largely  dependent 
upon  "  the  memory  of  long  and  hard  struggles,  upon 
the  consciousness  of  effort  expended  in  the  past  and 
willingness  to  make  further  sacrifice  in  the  future. ' '  No 
such  feeling  seems  to  have  moved  the  early  agricultur- 
ists. With  the  city,  however,  an  entirely  new  basis  for 
the  development  of  economic  and  social  relations  was 
offered.  In  the  purely  agricultural  stage  each  household 
was  sufficient  unto  itself;  everything  necessary  to  the 
daily  routine  of  life  was  manufactured  in  the  home. 
Division  of  labor  among  different  groups  of  occupations 
was  unknown.  With  the  certainty  of  a  ready  -  market 
comes  the  possibility  of  specialization  in  trade  and  in- 
dustry; relatively  complex  relations  of  service  and 
counter-service  soon  develop,  which  strengthen  the  ter- 
ritorial tie.  The  city  comes  to  mean  the  territorial  unit 
within  which  the  activity  of  the  artisan  has  its  lim- 
its, as  well  as  the  center  of  social  amusement  for  the 
well-to-do  landed  proprietor.  Thus  the  new  economic 
relations,  combined  with  the  social  pleasures  which 
never  fail  to  arise  when  population  becomes  dense,  give 
a  new  meaning  to  the  idea  of  residence.  .Citizenship, 
with  the  feeling  of  loyalty  and  attachment  to  the  terri- 
tory itself,  becomes  a  reality.  It  is  important  to  note 

1  Ihering,  "Evolution  of  the  Aryan." 


THE    CITY    IN    HISTORY  11 

that  the  feeling  of  attachment  is  no  longer  limited  to 
the  property  owned  by  the  individual,  as  is  the  case  in 
the  agricultural  stage.  The  whole  territory  of  the  city, 
as  the  center  of  new  economic  opportunities  and  the 
theater  of  social  pleasures,  becomes  the  "  home  "  of  the 
individual.  He  is  no  longer  the  inhabitant  of  a  small 
piece  of  ground,  but  the  resident  of  the  city — in  short, 
a  "  citizen." 

Another  important  result  of  this  development  of 
economic  and  social  relations  is  the  influence  upon  social 
manners  and  customs.  Language  has  here  recorded  the 
accumulated  experience  of  the  race  with  great  accuracy. 
The-  Latin  homo  rusticus  and  homo  urbanus,  which  indi- 
cate the  contrast  between  city  and  country  bred,  were 
used  to  describe  also  the  difference  between  the  boorish, 
the  unrefined,  the  vulgar,  and  the  cultured,  the  polished, 
the  courteous.  The  influence  of  city  life  upon  the  indi- 
vidual took  some  time  to  make  itself  felt  in  the  cities 
of  the  earliest  historic  time.  The  principle  of  social 
imitation  already  referred  to  shows  itself  with  peculiar 
force  in  the  growths  of  the  customs,  forms,  and  cere- 
monials which  constitute  the  outward  signs  of  the  refin- 
ing of  social  relations.  The  great  landowners,  who  were 
as  a  rule  the  heads  of  the  oldest  families  of  the  town — 
those  who  were  regarded  as  the  founders  of  the  city — 
were  the  first  to  develop  the  more  refined  forms  of  social 
intercourse.  They  were  at  the  same  time  the  political 
leaders,  a  fact  which  gave  to  all  their  actions  additional 


12       PROBLEMS    OF   CITY   GOVERNMENT 

prestige  and  authority.  To  appreciate  the  influence  of 
such  leaders  we  need  only  glance  at  the  conditions  of 
social  life  in  modern  society.  Each  class — in  fact,  every 
social  set  within  each  class — has  its  leaders,  those  who 
set  the  standards  of  social  intercourse.  The  constant 
search  for  "  the  thing  to  do,"  the  uncertainty  as  to 
whether  a  particular  form  is  correct  until  sanctioned 
by  a  social  leader,  are  among  the  most  interesting  illus- 
trations of  the  law  of  social  imitation.  Although  the 
attempt  of  each  class  to  imitate  the  forms  of  social 
intercourse  of  that  just  above  it  appears  at  first  sight 
to  be  one  of  the  weaknesses  of  human  nature,  viewed 
from  the  sociological  standpoint,  it  is  one  of  the  great 
forces  making  for  progress.  Its  influence  as  a  unify- 
ing force  extends  far  beyond  the  limits  of  the  city. 
Social  classes  in  different  cities  are  constantly  taking 
from  one  another  new  standards  of  conduct  and  inter- 
course. This  is  particularly  true  of  the  relation  of  the 
capital  city  to  provincial  towns.  Thus  in  ancient  times 
the  customs  of  the  Athenian  citizens  were  copied 
throughout  Greece;  the  patricians  of  Rome  were  the 
models  to  the  ruling  classes  in  other  cities  of  Italy ;  just 
as  to-day  the  man  of  leisure  of  Lyons  imitates  the  boule- 
vardier  of  Paris.  The  more  polished  manners  of  the 
wealthy  and  leisure  classes  gradually  filter  from  stratum 
to  stratum.  With  each  class  the  form  of  intercourse  is 
modified,  until  some  traces  of  the  refining  influence  are 
to  be  found  even  in  the  lowest  classes.  Babylon,  Athens, 


THE    CITY    IN    HISTORY  13 

Rome,  Constantinople,  each  in  turn  served  as  a  model 
for  the  provincial  towns,  just  as  Paris,  Berlin,  and  Lon- 
don serve  at  the  present  time. 

With  these  primary  results  of  city  growth  in  mind 
we  can  readily  appreciate  the  significance  of  city  life 
in  the  history  of  civilization.  It  creates  new  economic 
activities,  new  political  ideas  and  ideals,  new  forms  of 
social  intercourse,  new  possibilities  of  interchange  of 
ideas.  Discussion,  the  contact  of  mind  with  mind  through 
which  the  general  level  of  intelligence  is  raised,  becomes 
one  of  the  prominent  factors  in  the  political  life,  first  of  a 
class,  then  of  the  whole  people.  A  constant  and  ready 
audience  is  furnished  to  the  orator,  the  poet,  and  the 
philosopher.  Although  it  required  centuries  to  develop 
all  these  possibilities,  they  were  in  process  of  formation 
from  the  time  the  inclosing  walls  of  the  first  cities  were 
built. 

REFERENCES 

BAGEHOT,  W.     "Physics  and  Politics,"  Chap.  V.    New  York: 

Appleton,  1875. 

COULANGES,  FUSTEL  DE.  "  The  Ancient  City ."  Boston:  Lee,  1882. 
DRAPER,  J.  W.  "History  of  the  Intellectual  Development  of 

Europe."    New  York:  Harper,  1876. 
GEIGER,  W.     "Civilization  of  the  Eastern  Iranians  in  Ancient 

Times,"  vol.  i.     London :  Frowde,  1885. 
IHERING,  R.  VON.     "Evolution  of  the  Aryan."    New  York: 

Holt,  1898. 

MASPERO,  G.     "The  Dawn  of  Civilization."    Appleton,  1894. 
RIEHL,  W.   H.     "  Culturstudien    aus    drei    Jahrhundersten." 

Stuttgart:  Cotta,  1859. 


CHAPTER   II 

THE  ANCIENT,  THE  MEDIEVAL,  AND  THE  MODERN  CITY 

THE  CITIES  OF  GREECE 

THE  records  of  Greek  civilization  begin  and  end  with 
its  cities ;  no  other  nation  has  so  completely  concentrated 
its  life  and  thought  upon  the  perfecting  of  city  life. 
To  the  Greek  mind  the  history  of  the  race  begins  with 
the  founding  of  the  city.  The  facts  of  historical  devel- 
opment are  made  to  harmonize  with  this  view  by  means 
of  a  kind  of  social-compact  theory,  according  to  which 
primitive  tribes  were  brought  together  by  some  super- 
natural power,  and  as  the  result  of  their  union  the  city 
was  formed.  Though  this  explanation  of  the  origin 
of  the  city  may  lack  foundation  in  fact,  it  is  interesting 
as  an  indication  of  the  dominant  position  occupied  by 
the  city  in  the  thought  of  the  time.  This  early  form  of 
the  social-compact  theory  was  used  at  a  later  period 
to  explain  the  origin  of  Rome  and  of  the  other  cities 
of  Italy. 

The  rise  of  Athens  furnishes  one  of  the  best  instances 
of  the  influence  of  environment  upon  urban  growth. 
The  city  is  situated  in  the  center  of  a  plain  surrounded 

14 


ANCIENT,    MEDIAEVAL,    MODERN    CITY     15 

by  mountains  on  all  sides  except  on  the  south,  where 
it  approaches  the  sea.  This  protected  position  offered 
a  resting  place  for  the  more  advanced  clans  and  tribes, 
especially  those  who  were  prepared  for  the  settled  pur- 
suits of  agriculture.  The  introduction  of  the  olive, 
which  requires  great  care  and  attention,  served  to 
strengthen  the  attachment  to  the  soil,  and  thus  assured 
a  relatively  stable  population. 

In  the  immediate  vicinity  of  Athens,  furthermore, 
the  greatest  variety  of  soil  and  climate  was  to  be  found.1 
Within  a  short  radius  of  the  Acropolis  the  grape,  the 
olive,  and  the  staple  agricultural  products  were  raised 
with  comparatively  little  difficulty.  Mineral  resources 
of  considerable  importance  were  within  easy  reach,  clay 
pottery  offered  employment  to  a  large  number,  while 
close  proximity  to  the  sea  opened  the  seafaring  careers 
to  the  population.  Another  important  element  in  the 
situation  of  Athens  was  the  abundance  of  water  due  to 
nearness  of  the  mountain  ranges.  The  deification  of 
these  springs  and  the  important  position  ascribed  to  the 
water  nymphs,  such  as  Agrauleon,  Nysa,  and  Krene,  are 
indications  of  an  early  appreciation  of  the  necessity  of 
husbanding  these  resources  with  the  greatest  care.  The 
fact  that  the  first  settlement  of  the  native  tribes  was  not 
made  immediately  on  the  seacoast  is  not  surprising  when 
we  bear  in  mind  the  constant  exposure  to  attacks  of 
marauding  pirates.  In  ancient  times  the  seacoast  was 

1  Cf.  Curtius,  "  Stadtgeschichte  von  Athen." 


16   PROBLEMS  OF  CITY  GOVERNMENT 

the  haunt  of  robber  bands  rather  than  a  place  for  per- 
manent settlement. 

With  such  a  combination  of  physical  and  economic 
conditions,  the  rapid  growth  of  Athens  is  readily  ex- 
plained. In  fact,  the  country  districts  of  Greece  never 
developed  a  distinctive  life  of  their  own.  Citizenship 
meant  membership  in  the  body  corporate  of  some  one 
of  the  "  city-states."  Not  only  was  everything  planned 
to  meet  the  demands  of  the  city,  but  the  soil  itself  was 
owned  by  persons  living  within  the  city  walls.  Agri- 
culture was  carried  on  by  slaves,  and  the  produce  sent 
to  the  city.  To  be  compelled  to  live  in  the  country  was 
a  mark  of  social  degradation.  Citizenship  of  Athens 
was  the  goal  of  civic  ambition. 

We  have  some  difficulty  at  the  present  time  in  pictur- 
ing to  ourselves  the  conditions  resulting  from  the  com- 
plete absorption  by  the  city  of  all  the  political  and 
social  interests  of  the  community.  At  a  time  when 
political,  social,  and  religious  institutions  were  still  un- 
differentiated,  when  the  city  concentrated  within  itself 
the  ties  which  to-day  are  scattered  over  an  ever-increas- 
ing area  and  among  an  indefinite  number  of  institutions, 
it  is  not  surprising  that  an  intensity  of  city  life  was 
developed  which  has  not  again  been  attained.  For  this 
reason,  the  social  and  civic  life  of  the  cities  of  Greece  is 
of  far  greater  interest  to  us  than  the  form  of  govern- 
mental organization  and  administration. 

The  identity  of  state  and  municipality  makes  com- 


ANCIENT,    MEDIAEVAL,    MODERN    CITY     17 

parisons  with  modern  conditions  misleading  rather  than 
helpful.  Athens  seems  to  have  lacked  the  nice  coordi- 
nation of  authority  which  characterizes  our  modern 
system.1  During  the  early  history  of  the  city-states, 
kinship  seems  to  have  been  the  guiding  principle  in 
administrative  organization,  and  this  accounts  for  the 
growth  of  an  aristocracy  of  birth  that  monopolized  pub- 
lic office.  Coincident  with  the  increase  of  the  privileged 
class  came  the  first  clear  differentiation  of  governmental 
functions.  The  king  was  induced  to  delegate  certain 
of  his  powers  to  his  immediate  advisers,  an  act  that 
marked  the  first  step  in  the  transition  from  the  early 
"  king-priest  "  form  of  government,  in  which  all  power, 
civil  and  ecclesiastical,  was  vested  in  one  person,  to  the 
aristocratic  and  oligarchic  systems.  Those  whom  the 
king  called  in  as  advisers  soon  came  to  regard  their 
office  as  a  proprietary  right.  A  narrow  aristocracy  of 
magistrates  was  thus  formed,  which  in  Athens  absorbed 
all  political  power,  and  gradually  degenerated  into  an 
oligarchy  of  the  worst  type.  Most  of  the  other  cities 
of  Greece  went  through  the  same  stages  of  develop- 
ment. 

The  transition  to  democracy  in  Athens  was  preceded 
by  important  economic  changes  which  completely  altered 
the  class  relations  within  the  community.  The  primary 
cause  of  these  changes  was  the  increasing  industrial  im- 
portance and  consequent  social  power  of  the  artisan 

1  Boeckh,  '.'Staatshaushalt  der  Athener." 


18   PROBLEMS  OF  CITY  GOVERNMENT 

class.  This  element  arose  in  response  to  the  higher  and 
more  refined  wants  of  the  governing  and  wealthy  classes. 
Selected  at  first  from  among  the  dependents,  because  of 
special  aptitudes  as  handicraftsmen,  they  gradually  ac- 
quired social  privileges  which  became  more  important  as 
they  rose  in  the  industrial  scale. 

The  imitation  of  the  fashions  set  by  the  social  leaders 
of  Athens  aroused  a  constantly  increasing  demand  for 
the  better  class  of  products.  Economic  independence 
brought  with  it  gradual  social  emancipation.  It  required 
long  years  of  struggle  before  this  condition  of  fact  was 
recognized  in  law.  This  inherent  contradiction  between 
legal  and  social  relations  was  a  fruitful  source  of  discon- 
tent and  a  constant  menace  to  the  peace  and  safety  of 
the  community.  The  drastic  legislation  of  Solon  sought 
to  reestablish  harmony  between  law  and  fact.  The  first 
step  was  to  give  to  those  who  had  acquired  economic  in- 
dependence the  right  to  participate  in  the  political  life 
of  the  community.  To  make  civic  emancipation  com- 
plete, all  outstanding  debts  on  land  and  person  were 
abolished.  The  entry  of  a  relatively  large  class  of  for- 
mer serfs  and  slaves  into  the  political  life  of  the  com- 
munity led  to  the  formation  of  the  first  popular  assem- 
bly. From  this  time  until  the  Athenian  democracy 
reached  the  height  of  its  development  we  have  a  series 
of  assemblies  comprising  an  ever-increasing  percentage 
of  the  population.  The  best  authorities  seem  to  agree 
that  at  no  time  did  the  citizen  body  exceed  one  tenth 


ANCIENT,    MEDIAEVAL,    MODERN    CITY     19 

of  the  total  population  of  200,000.  To  this  general 
assembly  of  citizens  all  important  questions  were  sub- 
mitted. A  standing  committee  or  council  of  500,  elected 
from  the  larger  body,  was  intrusted  with  the  general 
administration  of  public  affairs.  That  Athens  was  able 
to  make  this  rapid  extension  of  rights  without  bring- 
ing about  political  anarchy  represents  her  most  impor- 
tant contribution  to  the  development  of  political  insti- 
tutions. 

The  ideals  which  dominated  the  period  are  so  differ- 
ent from  our  own  as  to  make  the  contrast  both  suggestive 
and  profitable.  In  Athens,  as  in  most  of  the  cities  of  the 
ancient  world,  the  individual  was  completely  subordi- 
nated to  the  community.  His  welfare  had  no  existence 
independent  of  the  welfare  of  the  city  as  a  whole.  The 
Greeks  could  not  conceive  of  an  opposition  of  interest 
between  the  individual  and  the  group,  or,  if  such  oppo- 
sition did  arise,  there  was  no  question  as  to  which  should 
prevail.  Ideas  of  imprescriptible,  inalienable  rights 
were  foreign  to  Greek  thought  until  the  time  of  the 
Stoics.  Adjustment  of  individual  activity  to  the  har- 
mony of  communal  life  seems  to  have  been  the  guiding 
principle  of  social  conduct.  The  contrast  between  the 
splendor  and  attractiveness  of  social  life  and  the  rela- 
tive crudity  of  family  life  is  difficult  for  us  to  grasp  at 
the  present  time.  This  is  largely  due  to  the  fact  that 
in  modern  communities  the  welfare  of  the  family  rather 
than  that  of  the  community  commands  the  best  energies 


20   PROBLEMS  OF  CITY  GOVERNMENT 

of  the  individual.  With  us  the  common,  inexclusive 
pleasures  of  communal  life  play  a  very  small  part  com- 
pared with  the  intense  pleasures  of  home  life.  In  the 
cities  of  Greece,  however,  these  public  pleasures  strength- 
ened the  feeling  of  local  attachment  which  found  ex- 
pression in  the  highest  type  of  local  patriotism. 

ROME  AND  THE  CITIES  OF  ITALY 

The  fact  that  the  conditions  of  soil,  climate,  and 
immediate  physical  environment  were  less  favorable  to 
Rome  than  to  Athens  was  far  outweighed  by  the  com- 
manding position  of  Rome  in  the  Italian  peninsula  and 
its  more  favorable  geographical  relation  to  the  other 
countries  of  the  Mediterranean.  Although  the  plain  of 
Latium — in  which  Rome  occupied  a  strategic  position — 
did  not  offer  the  variety  of  soil  and  climate  of  the  cen- 
tral plain  of  Attica,  it  was  sufficiently  fertile  to  attract 
and  support  a  large  population.  With  the  Sabine  Moun- 
tains to  the  east,  the  Volscian  to  the  south,  the  hill  lands 
of  Etruria  to  the  north,  and  the  sea  to  the  west,  its  posi- 
tion combined  to  a  remarkable  degree  security  with  ac- 
cessibility to  other  portions  of  Italy,  Europe,  and  Africa. 
The  desire  to  protect  themselves  from  the  attacks  of 
pirates,  which  led  the  early  settlers  of  Athens  to  remain 
at  a  distance  of  some  five  miles  from  the  sea,  was  equally 
powerful  in  the  case  of  Rome.  At  a  distance  of  some 
fourteen  miles  from  the  mouth  of  the  Tiber  the  series 


ANCIENT,   MEDIEVAL,    MODERN    CITY     21 

of  surrounding  hills  furnished  a  readily  defensible  posi- 
tion most  favorable  to  permanent  settlement. 

The  founding  of  the  city  has  been  lost  in  a  mass  of 
legend  and  tradition.  It  is  quite  certain,  however,  that 
a  number  of  separate  tribal  settlements  existed  on  the 
several  hills  long  before  the  formation  of  a  unified  city. 
The  division  of  the  city  into  wards,  known  as  tribus 
rusticce,  long  after  such  unity  had  been  attained,  is  con- 
clusive evidence  of  the  nature  of  the  constituent  factors 
in  the  formation  of  the  city.  The  explanation  now  gen- 
erally accepted  is  that  the  necessities  of  common  defense 
forced  the  tribes  into  closer  relationship,  whieh  ulti- 
mately developed  into  political  unity.  The  first  organi- 
zation of  the  populus  romanus  is  in  the  three  tribes — 
the  Ramnes,  the  Tities,  and  the  Luceres — which  were 
probably  the  original  tribal  settlements. 

The  government  of  Rome  presents  comparatively 
little  of  real  interest  to  the  student  of  local  institutions, 
owing  largely  to  the  lack  of  differentiation  between 
state  and  local  administration.  During  its  early  history, 
when  territorial  dominion  did  not  extend  beyond  the 
city  limits,  the  government  was  organized  on  the  prin- 
ciple of  the  patriarchal  family  and  clan.  For  admin- 
istrative purposes  the  city  was  divided  into  thirty  wards 
or  curicB,  each  of  which  enjoyed  separate  legal  exist- 
ence and  retained  for  a  long  period  separate  assemblies 
and  festivals.  The  logical  application  of  the  patria 

potestas  to  the  organization  of  the  city  government  de- 
3 


22       PROBLEMS    OF    CITY    GOVERNMENT 

veloped  the  monarchical  system  of  the  earliest  period 
of  Roman  history,  a  system  analogous  in  many  respects 
to  the  early  organization  of  Athens.  The  elders  of  the 
constituent  clans  formed  a  body  of  councilors  which 
afterwards  developed  into  the  Senate,  while  the  body 
of  the  people  was  consulted  only  when  the  king  wished 
to  introduce  an  innovation  into  the  public  law.  As 
against  both  king  and  popular  assembly  the  Senate,  as 
guardian  of  the  constitutional  system,  exercised  a  veto 
power.  The  transition  from  monarchy  to  aristocracy, 
thence  to  democracy  and  oligarchy  brought  Rome  to 
the  period  of  the  extension  of  its  dominion  beyond  the 
limits  of  the  city.  The  organization  of  the  government 
loses  its  local  character,  adapting  itself  to  the  larger 
problems  of  empire.  An  examination  of  this  period 
belongs  to  the  history  of  the  state  rather  than  to  the 
city. 

The  cities  of  ancient  Italy,  while  lacking  the  charm 
of  high  artistic  development  which  characterized  some 
of  the  cities  of  Greece,  mark  a  distinct  advance  when 
viewed  from  a  political  standpoint.  The  Greek  concept 
of  restricted  city  territory  was  ill  adapted  to  the  larger 
view  of  political  relations  developed  by  the  Romans. 
Furthermore,  the  growth  of  a  world  empire  made  it 
necessary  to  give  a  broader  interpretation  to  citizen- 
ship. Roman  citizenship  was  conferred  upon  the  lead- 
ing citizens  of  conquered  districts,  even  when  their 
actual  residence  was  at  a  great  distance  from  the  city. 


ANCIENT,    MEDIAEVAL,    MODERN    CITY     23 

This  intangible  political  relation   marked   a  long  step 
toward  the  idea  of  nationality. 

Of  all  the  cities  of  the  Italian  peninsula  of  this 
period  Rome  is  the  only  one  which  commands  our 
attention  because  of  her  enormous  influence  upon  west- 
ern civilization,  the  magnitude  of  the  municipal  prob- 
lems with  which  she  had  to  deal,  and  the  striking 
analogies  with  modern  urban  growth.  In  her  history 
one  can  detect  the  presence  of  most  of  the  forces  which 
explain  the  increase  of  urban  population  in  recent  times. 
In  advancing  beyond  the  "  city-state  "  and  developing 
the  idea  of  world  empire  she  created  the  conditions 
requisite  for  the  growth  of  large  centers  of  population. 
The  extension  of  political  influence  to  distant  countries 
led  to  the  development  of  an  elaborate  administrative 
system  with  its  center  in  Rome.  The  conquered  coun- 
tries, instead  of  being  reduced  to  a  condition  of  com- 
plete subjection,  were  permitted  a  large  measure  of  local 
self-government.  Political  centralization  brought  with 
it  well-developed  means  of  communication  between 
province  and  capital,  and  a  system  of  police  protection 
to  life  and  property.  Thus  freedom  of  migration  was 
for  the  first  time  made  possible  and  resulted  in  the 
influx  of  the  country  population  into  the  cities.  The 
economic  opportunities  offered  by  a  city  of  the  size  of 
Rome,  combined  with  the  fascination  of  the  spectacular 
display  of  court  life,  proved  irresistible  to  the  most 
energetic  and  capable  of  the  inhabitants  of  the  rural 


24       PROBLEMS    OF   CITY   GOVERNMENT 

districts.  The  constant  tension  of  interest  and  excite- 
ment which  the  city  offered  made  poverty  there  seem 
more  desirable  than  comparative  ease  in  the  rural  dis- 
tricts. The  metropolis  was  open  to  every  new  idea  and 
eagerly  welcomed  every  invention  and  discovery.  Men 
of  science,  philosophers,  and  poets  all  sought  the  ap- 
proval of  Rome.  The  disbanding  of  the  armies  served 
to  increase  still  further  the  population  of  the  capital 
city. 

With  all  these  influences  at  work,  it  is  not  surpris- 
ing that  the  population  soon  approached  the  million 
mark.  Owing  to  the  absence  of  a  census  the  exact  num- 
ber is  not  known,  the  estimates  varying  from  750,000 
to  2,000,000.  The  best  authorities  place  it  at  about 
800,000.*  There  is  abundant  evidence  that  when  this 
point  was  reached  all  the  phenomena  of  overcrowding 
made  their  appearance,  for  although  the  walls  of  the 
city  embraced  a  comparatively  large  territory  and  were 
being  continually  moved  farther  from  the  original  lim- 
its, the  lack  of  means  of  transportation  led  to  the  con- 
centration of  population  in  the  central  districts.  Every- 
one wished  to  be  near  the  center  of  social  life  and 
amusement.  The  clientes  had  to  be  at  the  door  of  the 
patron  early  in  the  day,  and  were  unwilling  to  take  the 
risk  of  a  long  journey  from  the  peripheral  or  suburban 
districts. 

The  narrow  streets,  characteristic  of  all  the  ancient 

1  Cf.  Beloch,  "BevOlkerung  der  Griechisch-romanischen  Welt." 


ANCIENT,   MEDIAEVAL,   MODERN    CITY     25 

Italian  cities,  added  to  the  difficulties  of  the  situation. 
In  Rome  we  can  see  clearly  the  relation  of  the  standard 
of  life  of  a  people  to  the  question  of  overcrowding.  It 
is  true  that  most  of  our  modern  cities  contain  districts 
far  more  densely  populated  than  any  quarter  of  Rome, 
but  owing  to  the  low  standard  of  life  of  the  poorer 
classes  and  the  lack  of  effective  sanitary  supervision, 
the  resulting  conditions  in  Rome  were  far  worse.  For- 
tunately, the  habits  of  the  people  led  them  to  spend  the 
greater  portion  of  their  time  out  of  doors,  which  coun- 
teracted, in  part  at  least,  the  unwholesome  effects  of  the 
conditions  of  housing.  This  love  of  street  life,  which 
contrasts  so  strongly  with  conditions  in  our  American 
cities,  led  to  the  congestion  of  the  thoroughfares  to 
such  a  degree  that  Caesar  found  it  necessary  to  issue 
a  decree  prohibiting  the  passage  of  wagons  through 
the  central  districts  during  the  ten  hours  after  sunrise. 
The  strict  enforcement  of  this  regulation  was  made  im- 
perative by  the  great  number  of  traders'  booths  that 
were  erected  along  the  sidewalks.  Not  until  the  time 
of  Augustus  was  any  systematic  attempt  made  to  regu- 
late the  building  of  dwelling  houses.  Their  height  was 
then  limited  to  seven  stories,  and  some  elementary  sani- 
tary requirements  were  prescribed. 

It  is  curious,  and  at  first  sight  rather  surprising, 
that  the  municipality  of  Rome — and  the  same  is  true 
of  all  the  ancient  cities — while  neglecting  the  regula- 
tion of  private  sanitation,  gave  considerable  attention  to 


26       PROBLEMS    OF   CITY   GOVERNMENT 

everything  connected  with  public  convenience  and  com- 
fort. Great  public  baths,  a  magnificent  water  supply, 
and  splendid  public  places  were  provided  with  a  munifi- 
cence which  has  not  since  been  equaled.  By  such  means 
the  emperors  gained  the  support  of  the  masses.  To 
make  way  for  such  public  improvements  whole  sections 
of  the  city  were  torn  down,  thus  increasing  the  conges- 
tion in  adjacent  districts. 

In  short,  the  municipal  activity  of  Rome  was  directed 
mainly  toward  the  development  of  the  social  amusements 
of  the  city.  The  regulation  of  individual  health  and 
welfare  was  largely  lost  sight  of.  In  modern  times  the 
tendency  is  in  exactly  the  opposite  direction.  The  great, 
and  probably  the  only,  lesson  which  Rome  has  to  teach 
modern  municipalities,  qua  municipalities,  is  the  im- 
portance of  the  role  of  the  public  authority  in  provid- 
ing healthful  recreation  for  the  citizens.  Our  strong 
individualistic  instincts  have  led  us  to  develop  only 
those  sides  of  municipal  activity  that  contribute  directly 
to  individual  welfare ;  we  are  still  far  from  accepting 
the  idea  of  the  social  role  of  the  municipality.  It  is 
clear  to  every  student  of  our  industrial  and  social  con- 
ditions that  we  must  sooner  or  later  give  due  weight 
to  this  more  positive  view  of  governmental  power,  and 
in  the  readjustment  which  is  gradually  being  effected 
the  experience  of  the  ancient  cities  will  be  of  value. 


ANCIENT,    MEDLEVAL,    MODERN    CITY     27 

CITIES  OF  THE  MIDDLE  AGES 

With  the  breaking  up  of  the  Roman  empire,  Europe 
enters  upon  a  period  of  disintegration  which  finds  ex- 
pression in  the  most  extreme  forms  of  political  decen- 
tralization. The  feudal  system,  while  containing  the 
germs  of  city  growth,  did  not  permit  the  free  move- 
ment of  population  necessary  to  the  growth  of  large 
centers.  Settlement  was  dependent  upon  the  will  of  the 
feudal  lord.  The  earliest  towns  grouped  themselves 
around  the  feudal  castles,  mainly  to  enjoy  the  protection 
afforded  by  the  fortifications,  while  others  owed  their 
origin  to  special  market  privileges  granted  by  the  feudal 
lords.  To  one  or  the  other  of  these  causes,  or  to  both 
combined,  the  growth  of  the  mediaeval  towns  may  be 
traced.  None  of  the  early  towns  could  boast  of  more 
than  a  few  thousand  inhabitants — hardly  larger  than  a 
modern  village;  in  fact,  the  largest  English  borough 
of  the  thirteenth  century  contained  but  5,000  inhab- 
itants.1 At  the  beginning  of  the  fifteenth  century  Lon- 
don itself  had  a  population  of  but  40,000.  The  three 
primary  requisites  for  city  growth  were  lacking: 

1.  A    large    territory    from    which   to    draw    popu- 
lation. 

2.  An  advanced  state  of  commercial  and  industrial 

1  Mrs.  J.  R.  Green,  "Town  Life  in  the  Fifteenth  Century," 
op.  cit. 


28   PROBLEMS  OF  CITY  GOVERNMENT 

development  offering  opportunity  for  remunerative  em- 
ployment to  large  numbers. 

3.  A  strong  central  government  guaranteeing  free- 
dom of  migration  from  district  to  district,  thus  per- 
mitting the  city  to  exercise  its  full  powers  of  attraction 
upon  the  country  population. 

The  absence  of  these  conditions  places  the  social  life, 
the  economic  activity,  and  the  position  of  the  mediaeval 
city  in  the  loosely  coordinated  political  system  of  the  time 
in  striking  contrast  with  modern  municipal  institutions. 

We  have  become  so  accustomed  to  regard  the  city  as 
an  administrative  subdivision  of  the  state,  enjoying  cer- 
tain subordinate  powers  of  government,  that  we  have 
great  difficulty  in  picturing  to  ourselves  the  town  life 
of  the  twelfth,  thirteenth,  and  fourteenth  centuries. 
The  greatest  differences  relate  to  the  activity  rather 
than  to  the  form  of  city  government.  The  mediaeval 
town  was  primarily  an  economic  unit,  the  modern  city 
is  mainly  a  political  and  administrative  division.  A 
study  of  the  town  life  of  the  Middle  Ages  leaves  the 
impression  that  we  have  to  do  with  great  commercial 
corporations,  exploiting  special  economic  privileges. 
The  monopoly  of  market  rights,  the  power  of  regulat- 
ing trades  and  industries,  the  complete  control  over 
every  economic  activity,  all  rights  wrested  from  the  tem- 
poral or  ecclesiastical  feudal  lord,  are  the  most  important 
factors  in  the  development  of  town  institutions.  Those 
who  participate  in  the  struggle  for  these  privileges 


ANCIENT,   MEDIAEVAL,   MODERN    CITY     29 

share  equally  in  their  enjoyment.  When  we  stop  to 
consider  that  all  our  modern  ideas  of  political  and  civil 
rights,  patriotism,  and  national  allegiance  were  as  yet 
undeveloped,  it  is  not  at  all  surprising  that  the  early 
burghers  looked  upon  the  town  as  a  complex  of  economic 
privileges,  and  that  the  town  life  of  the  period  should 
receive  its  character  from  this  principle.  The  exploita- 
tion of  the  tangible  property  and  of  the  intangible 
rights  of  the  town  is  the  key  to  the  institutions  of  the 
period. 

The  main  problems  with  which  the  mediaeval  towns 
had  to  deal  were  connected  with  the  enjoyment  of  these 
property  rights.  Not  until  late  in  their  history  was  any 
attempt  made  to  develop  the  distinctively  municipal 
services  with  which  we  associate  the  modern  city;  no 
public  water  supply,  no  public  drainage  or  lighting 
system,  no  sanitary  regulations — in  a  word,  nothing  to 
remind  us  of  the  purely  public  or  governmental  side 
of  the  city's  activity.  On  the  other  hand,  innumerable 
regulations  concerning  trade  and  industry,  prescribing 
with  great  minuteness  every  detail  in  the  industrial 
life  of  the  individual,  occupied  the  attention  of  the 
local  authorities.  Those  who  were  fortunate  enough  to 
be  parties  to  the  original  privileges  were  naturally  anx- 
ious to  assure  exclusive  enjoyment  to  themselves  and  to 
their  posterity.  Active  participation  in  the  benefits  of 
these  privileges  was  the  mark  of  citizenship ;  strangers 
were  admitted  as  a  matter  of  grace.  The  idea  of  polit- 


30   PROBLEMS  OF  CITY  GOVERNMENT 

ical  right  was  the  product  of  a  much  later  period.  The 
city  authorities  not  only  regulated  the  trade  and  com- 
merce of  the  town,  but  were  the  leading  spirits.  In 
many  cases  the  city  had  the  first  option  on  all  goods 
offered  for  sale.  A  curious  trait  of  the  policy  of  the 
mediaeval  towns  was  the  strong  desire  to  protect  the  con- 
sumer against  the  exactions  of  the  producer.  The  price, 
time,  and  place  of  sale  were  fixed  for  every  class  of 
goods.  The  few  foreign  merchants  who  were  permitted 
entry  into  the  city  markets  were  carefully  watched,  the 
supervision  of  the  public  authority  often  extending 
to  the  assignment  of  their  dwelling  places. 

The  contrast  between  medieval  and  modern  citizen- 
ship is  readily  explained  when  we  keep  in  mind  that 
the  former  carried  with  it  certain  specific  economic 
advantages,  quite  as  definite  as  membership  in  the  mod- 
ern business  corporation.  It  is  no  wonder,  therefore, 
that  citizenship  became  a  marketable,  inheritable  prop- 
erty right.  In  some  cases  it  could  be  acquired  by  owner- 
ship of  land  within  the  limits  of  the  town  or  by  serving 
an  apprenticeship  in  one  of  the  trades  under  guild  regu- 
lation. But  in  every  case  the  extension  of  citizenship 
was  under  the  control  of  the  town  authorities.  The 
usual  methods  of  acquiring  full  membership  in  the  com- 
munity were,  first,  through  inheritance;  second,  gift 
from  the  municipality ;  third,  purchase. 

The  desire  of  the  citizen  body  to  retain  the  exclusive 
enjoyment  of  the  town  privileges  explains  the  form  of 


ANCIENT,   MEDLEVAL,   MODERN   CITY    31 

government  of  the  mediaeval  towns.  It  is  but  natural 
that  those  who  had  participated  in  the  early  struggles 
with  the  feudal  lords  should  share  in  the  advantages 
accruing  from  the  results  of  the  conflict.  In  the  early 
history  of  many  of  the  towns  the  market  rights  fur- 
nished the  economic  basis  for  city  growth.  Equal  par- 
ticipation in  these  advantages  and  political  equality  went 
hand  in  hand.  The  democratic  movement  of  the  Mid- 
dle Ages  was  checked  as  soon  as  the  original  settlers 
or  their  descendants  had  established  the  rule  of  exclu- 
sive enjoyment.  After  the  twelfth  century  distinct 
traces  of  a  nascent  oligarchy  are  to  be  found,  which 
become  well  marked  at  the  beginning  of  the  fourteenth. 
"  The  English  borough  in  its  first  condition,  and  prob- 
ably during  a  considerable  part  of  the  twelfth  and  thir- 
teenth centuries,  realized  the  ideal  of  a  true  democratic 
community. ' '  *  The  forces  that  undermined  the  early 
democracy  were  twofold  —  first,  the  denial  of  equal 
economic  opportunity  to  newcomers,  which  led  to  their 
political  subordination ;  second,  the  social  ascendancy  of 
the  more  prosperous  trades,  which  gave  to  certain  classes 
the  leadership  in  political  affairs. 

The  first  of  these  requires  little  explanation,  as  the 
monopoly  of  economic  and  political  privileges  which 
the  founders  of  the  towns  had  secured  for  themselves 
was  inherently  inconsistent  with  the  principles  of  de- 
mocracy. The  second  is  closely  connected  with  the 

1  Mrs.  J.  R.  Green,  "Town  Life  in  the  Fifteenth  Century." 


32   PROBLEMS  OF  CITY  GOVERNMENT 

growth  of  the  guilds  which  were,  at  first,  conglomerate 
associations  of  employers  and  employees — the  organiza- 
tion of  producers  as  against  consumers.  Within  each 
guild,  rank  was  determined  by  individual  skill  and  effi- 
ciency; inherited  privileges  were  unknown.  Democracy 
within  the  guild  continued  to  exist  long  after  democracy 
in  town  government  had  disappeared. 

The  intimate  relation  between  the  guilds  and  the 
town  government,  which  developed  very  gradually,  was 
due  to  the  fact  that  the  main  function  of  the  public  au- 
thority was  to  guard  the  economic  privileges  of  the  town 
and  to  further  its  industrial  prosperity.  Constant  con- 
sultation with  the  trade  organizations  and  their  active 
cooperation  were  necessary  for  the  efficient  performance 
of  this  function.  It  is  but  natural  that  they  should  be 
called  upon  for  advice  in  the  solution  of  purely  commer- 
cial questions,  in  much  the  same  way  as  municipal  au- 
thorities call  upon  chambers  of  commerce  at  the  present 
time.  In  the  mediaeval  city,  moreover,  municipal  activi- 
ties were  almost  exclusively  concerned  with  questions  of 
trade,  commerce,  and  industry.  With  organizations  so 
well  equipped  to  deal  with  commercial  questions  as 
were  the  guilds,  it  was  only  a  matter  of  time  when 
their  advisory  power  would  develop  into  real  authority 
over  this  branch  of  municipal  activity.  The  absorption 
of  the  most  important  public  functions  by  the  trade 
organizations  gave  them  a  strength  of  political  power 
which  resulted  in  the  subservience  of  all  other  public 


ANCIENT,   MEDIAEVAL,   MODERN    CITY    33 

authorities  to  their  will.  This  shifting  of  public  power 
completely  changed  the  character  of  the  city  govern- 
ment. 

The  consciousness  of  acquired  power  reacted  upon 
the  guilds,  transforming  them  into  aristocratic  associa- 
tions of  the  most  pronounced  type.  The  temptation  to 
use  this  power  to  secure  monopolistic  control  over  the 
trade  and  industry  of  the  city  was  irresistible.  Mem- 
bership in  one  of  the  guilds  was  made  a  prerequisite 
to  the  exercise  of  a  trade.  Thus  there  was  a  twofold 
incentive  to  withhold  membership  from  newcomers: 
First,  to  prevent  the  overcrowding  of  trades;  and,  sec- 
ond, to  maintain  the  high  value  of  guild  membership. 
Thus  the  same  economic  forces,  which  in  the  early  his- 
tory of  the  mediaeval  towns  were  instrumental  in  creat- 
ing a  democratic  society,  became  destructive  of  this  form 
as  soon  as  the  desire  to  retain  exclusive  possession  of 
market  and  trade  privileges  began  to  show  itself. 

It  was  not  long  before  the  guild  aristocracy  degen- 
erated into  an  oligarchy,  due  in  part  to  the  exceptional 
power  enjoyed  by  the  leaders  of  the  guilds,  but  mainly 
to  the  decreasing  interest  in  town  affairs  incident  to 
the  expansion  of  commercial  relations.  As  is  the  case 
with  all  such  associations,  the  affairs  of  the  guilds  were 
carried  on  by  a  comparatively  small  number  of  officials 
who  naturally  enjoyed  the  political  power  connected 
with  their  position.  Thus  a  small  fraction  of  the  total 
guild  membership  became  the  real  rulers  of  the  town. 


34   PROBLEMS  OF  CITY  GOVERNMENT 

That  this  assumption  of  power  aroused  no  great 
opposition  is  due  to  the  fact  that  at  the  time  when  it 
took  place  the  economic  and  political  interests  of  the 
citizen  were  beginning  to  extend  beyond  the  limits  of 
the  town.  At  the  close  of  the  fourteenth  century  the 
English  towns  had  reached  the  height  of  independent 
development.  "  With  the  ages  of  restless  growth  lying 
behind  them,  and  with  their  societies  as  yet  untouched 
by  the  influence  of  the  Renaissance  or  the  Reformation 
or  the  new  commercial  system,  the  boroughs  had  reached 
their  prosperous  maturity."1  During  the  succeeding 
century  England  passed  through  her  first  industrial 
revolution.  From  a  cloth-importing  she  became  a  cloth- 
exporting  country.  The  establishment  of  commercial 
relations  with  foreign  countries  carried  the  interest  of 
the  citizen  beyond  the  territorial  limits  of  municipal 
control.  The  spirit  of  independence  and  assertive  indi- 
vidualism thus  created  reacted  unfavorably  upon  local 
institutions,  while  local  ties,  being  largely  economic,  were 
weakened  with  the  disappearance  of  economic  depend- 
ence upon  the  community.  So  soon  as  the  citizen  began 
to  appreciate  the  possibilities  of  individual  activity 
independent  of  the  cooperation  and  sanction  of  the 
public  authority,  the  vigor  and  intensity  of  town  life 
began  to  decline. 

With  the  fifteenth  century  we  enter  upon  a  period 
of  political  development  which  was  destined  to  destroy 

>  Mrs.  J.  R.  Green,  "Town  Life  in  the  Fifteenth  Century." 


ANCIENT,   MEDIAEVAL,   MODERN    CITY    35 

the  importance  of  the  town  as  a  political  unit,  reducing 
it  to  the  condition  of  a  subordinate  administrative  sub- 
division of  the  state.  The  growth  of  national  life 
proved  fatal  to  town  independence  in  England,  as  well 
as  on  the  Continent.  In  England,  however,  the  period 
of  local  autonomy  was  considerably  lengthened  by  the 
failure  of  the  feudal  lords  to  extend  their  political 
power  at  the  expense  of  the  crown.  Before  reaching 
national  unity  the  countries  of  continental  Europe 
passed  through  a  period  of  territorial  integration,  in 
which  the  small  but  independent  sovereignties  were  in 
a  state  of  constant  conflict  with  the  towns. 

In  France  the  necessities  of  war  developed  a  strong 
central  government  as  early  as  the  twelfth  century, 
cutting  short  the  period  of  municipal  independence. 
In  England  the  centralizing  policy  of  Henry  VIII  and 
Wolsey  demanded  the  subordination  of  the  towns  to 
the  purposes  of  the  king.  The  crown  saw  clearly  that 
independence  of  local  policy  develops  political  ties  and 
political  ideas  inherently  antagonistic  to  a  strongly  cen- 
tralized system.  The  necessity  of  obtaining  control  over 
the  towns  was  made  imperative  by  the  desire  of  the 
king  to  maintain  his  supremacy  in  Parliament  through 
the  manipulation  of  the  borough  representation.  In 
order  to  assure  to  the  crown  the  support  of  this  im- 
portant element  of  parliamentary  representation,  a  sys- 
tem of  electing  members  was  devised,  to  which  the 
peculiar  development  of  borough  government  lent  ready 


36   PROBLEMS  OP  CITY  GOVERNMENT 

aid.  As  the  concentration  of  municipal  authority  in 
the  hands  of  a  few  guild  representatives  grew  more 
pronounced,  it  became  the  custom,  in  adjusting  inter- 
municipal  relations,  to  identify  these  individuals  with 
the  municipality.  The  corporate  concept,  which  was 
just  making  its  appearance  in  the  English  law — having 
been  first  applied  to  ecclesiastical  and  eleemosynary 
institutions — furnished  a  ready  means  of  effecting  the 
purpose  of  the  crown.  The  essence  of  the  corporate 
idea  is  the  legal  personification  of  a  collection  of  in- 
dividuals. If,  by  any  means,  the  crown  could  make 
its  own  nominees  the  corporate  body,  there  would  be 
no  difficulty  in  controlling  the  parliamentary  represen- 
tation of  the  borough.  This  was  done  by  issuing  writs 
of  quo  warranto  and  substituting  for  the  charters  for- 
feited under  this  proceeding  a  form  of  organization  in 
which  those  constituting  the  corporate  body  (i.  e.,  the 
returning  parliamentary  organ)  were  specifically  named. 
Such  proceedings  would  have  aroused  a  storm  of 
opposition,  even  a  revolution,  at  an  earlier  period,  when 
the  citizen  body  was  in  closer  touch  with  municipal 
powers  and  prerogatives,  but,  as  has  been  pointed 
out  already,  the  growing  industrial  independence  had 
greatly  weakened  local  ties.  With  the  exception  of  the 
larger  cities,  such  as  London,  little  opposition  was  en- 
countered. The  people  were  too  much  absorbed  in 
exploiting  the  new  commercial  and  industrial  opportuni- 
ties to  pay  much  attention  to  changes  in  the  mechanism 


ANCIENT,   MEDIEVAL,   MODERN   CITY     37 

of  local  government.  Furthermore,  the  increasing  im- 
portance of  national  affairs  absorbed  the  political  en- 
ergies of  the  people.  Thus  a  change,  which  at  first 
glance  would  seem  to  violate  the  fundamental  political 
principles  of  a  liberty-loving  people,  took  place  without 
violence,  and  almost  without  opposition. 

In  granting  the  new  charters  the  crown  appointed 
the  members  of  the  corporation,  giving  to  these  ap- 
pointees power  to  fill  all  vacancies.  As  a  result,  the 
community  as  a  body  of  citizens  and  the  borough  as  a 
corporation  became  distinct  entities.  Under  such  con- 
ditions it  is  not  surprising  that  the  civic  life  of  the 
boroughs  of  the  sixteenth  and  seventeenth  centuries 
possesses  little  of  interest  to  the  student  of  local  institu- 
tions. Town  life  does  not  again  offer  a  fruitful  field 
for  investigation  until  the  appearance  of  the  new  urban 
centers,  which  owe  their  rise  to  the  industrial  changes  of 
the  end  of  the  eighteenth  century. 

THE  MODERN  CITY 

The  mediaeval  system  of  independent  town  units  was 
succeeded  by  a  period  of  political  development  in  which 
the  city  was  given  a  position  fundamentally  different 
from  that  which  it  occupied  during  previous  periods. 
The  change  affected  not  merely  the  relation  between  city 
and  state,  but  also  profoundly  influenced  the  attitude 
of  the  population  toward  the  city  and  its  government. 


38   PROBLEMS  OF  CITY  GOVERNMENT 

With  the  Reformation  period  the  transformation  of 
political  ideas  and  ideals  becomes  distinctly  apparent; 
a  movement  which  was  hastened  by  the  radical  changes 
in  territorial  relations  throughout  Europe. 

In  the  cities  of  the  ancient  and  mediaeval  world  the 
individual  in  all  his  personal  and  property  interests  was 
subordinated  to  the  community.  The  communitates  oc- 
cupied first  place  in  the  political  thinking  of  the  time; 
political  ideals  were  grouped  about  the  city.  Individual 
welfare  was  so  closely  bound  up  with  the  city's  activity 
that  this  interpretation  of  the  relation  of  the  individual 
to  the  community  was  not  only  logical  but  necessary. 
Every  relation  of  trade,  industry,  or  commerce  was 
dependent  upon  the  public  authority.  In  the  mediaeval 
towns,  membership  in  the  political  community  was  a 
prerequisite  to  the  exercise  of  any  trade  or  calling.  In 
consequence  the  attention  and  interest  of  the  population 
were  centered  in  the  city. 

The  new  and  distinctly  modern  spirit  first  asserts 
itself  in  an  intense  individualism  which  completely 
changes  the  concept  of  government.  The  idea  of  the 
individual  as  an  end  rather  than  as  a  means  begins 
to  dominate  political  thought.  England  of  the  seven- 
teenth century  gives  clear  evidence  of  the  influence  of 
the  new  political  principles.  The  role  of  government, 
which  in  the  mediaeval  cities  had  been  construed  to  in- 
clude the  regulation  of  every  field  of  individual  activity, 
receives  a  new  and  distinctly  negative  interpretation. 


ANCIENT,   MEDLEVAL,   MODERN   CITY     39 

Ideas  of  inherent  and  imprescriptible  individual  rights 
obtain  general  acceptance,  while  government  is  regarded 
as  the  guarantor  and  protector  of  these  rights  rather 
than  as  a  positive  factor  in  industrial  activity.  The 
settlement  of  America  gives  to  these  ideas  a  new  and 
wider  environment  in  which  to  develop.  There  they 
receive  definite  formulation  in  law.  The  bills  of  rights 
and  the  prohibitions  upon  government  of  the  early  com- 
pacts are  dominated  by  a  spirit  of  individualism  which 
was  fostered  by  the  industrial  evolution  of  the  last  cen- 
tury. In  a  country  of  unexploited  resources  the  oppor- 
tunities for  individual  initiative  and  enterprise  are  so 
great  that  a  feeling  of  independence  toward  government 
inevitably  arises. 

Due,  in  large  part,  to  the  combination  of  these  forces, 
the  negative  view  of  government  which  limits  the  public 
authority  to  the  protection  of  individual  rights,  received 
its  fullest  development  in  the  United  States.  It  has  met 
with  no  such  counteracting  political  forces  as  has  been 
the  case  in  England.  Not  only  the  conditions  of  eco- 
nomic growth,  but  the  character  of  our  political  life  have 
fostered  these  individualistic  tendencies.  The  political 
issues  which  the  present  generation  has  had  to  face  have 
made  prominent  individual  rather  than  national  inter- 
ests. The  manufacturer  desires  a  tariff  to  increase  his 
profits;  the  workingman  to  raise  his  wages;  the  debtor 
advocates  a  silver  standard;  the  creditor  a  gold  stand- 
ard. In  none  of  these  questions  have  the  interests  of  the 


40   PROBLEMS  OF  CITY  GOVERNMENT 

nation,  as  such,  been  made  prominent.  It  is  taken  for 
granted  that  public  and  individual  interests  are  essen- 
tially identical. 

That  this  attitude  toward  government  has  strongly 
influenced  the  civic  life  of  our  cities  is  evident  to  every 
observer  of  American  political  conditions.  To  one  sec- 
tion of  the  community  the  city  government  is  a  necessary 
evil  designed  to  avoid  the  greater  evil  which  would  result 
from  the  clash  of  individual  interests.  To  another  it 
is  akin  to  a  great  business  corporation,  justifying  the 
use  of  the  ordinary  standards  of  commercial  morality 
in  obtaining  favors  and  privileges.  No  civic  or  social 
duty  is  violated  if  franchises  are  obtained  by  question- 
able methods;  transactions  of  this  character  are  judged 
by  the  prevailing  standards  of  business  life.  It  is  as- 
sumed that  if  the  municipal  authorities  are  unable  to 
safeguard  the  city's  interests,  they  deserve  to  be  out- 
classed in  the  commercial  struggle,  as  would  any  incom- 
petent business  man.  The  city's  interests  are  rarely,  if 
ever,  identified  with  those  of  the  public,  and  in  taking 
advantage  of  incompetent  or  corrupt  officials  there  is  no 
thought  of  depriving  the  public  of  rights  to  which  it 
is  entitled.  So  long  as  such  a  view  of  the  city  and 
its  interests  obtains  we  cannot  expect  any  permanent 
improvement  in  the  civic  morality  of  individuals  or 
corporations  seeking  special  privileges  from  the  gov- 
ernment. 

Another  important   influence  in  strengthening  this 


ANCIENT,   MEDLEY AL,   MODERN   CITY    41 

negative  attitude  toward  the  city  is  closely  connected 
with  one  of  the  strongest  traits  of  American  national 
character — the  high  development  of  the  domestic  virtues 
and  the  resulting  intensity  of  home  life.  While  no  one 
can  deny  the  great  service  which  these  qualities  have  ren- 
dered to  our  national  life,  we  must  recognize  that  upon 
our  civic  life  their  influence  has  been  distinctly  negative. 
The  concentration  of  effort  upon  the  exclusive  pleasures 
of  the  home  has  retarded  the  growth  of  the  distinctive 
civic  ideals.  The  feeling  of  social  solidarity  and  civic 
responsibility,  so  necessary  to  the  maintenance  of  high 
standards  in  public  life,  has  remained  undeveloped. 
Administrative  efficiency  has  been  attained  only  in  those 
departments — such  as  the  police  and  fire  services — which 
directly  affect  the  safety  and  integrity  of  the  home. 

In  European  cities,  on  the  other  hand,  those  munic- 
ipal activities  which  contribute  most  to  the  inexclusive 
and  social  pleasures  are  more  highly  developed.  The 
street-cleaning,  highway-construction,  and  architectural 
services  of  Paris  furnish  a  striking  illustration  of  this 
principle.  In  the  life  of  the  French  capital  the  outdoor 
pleasures  play  a  most  important  part,  pleasures  which 
are  dependent  largely  upon  the  degree  of  care  given  to 
the  streets.  As  a  result,  the  failure  to  maintain  high 
standards  is  immediately  felt  by  the  population  and 
arouses  violent  opposition.  In  our  American  cities  the 
streets  are  regarded  as  means  of  communication  and 
nothing  more;  and  the  mass  of  the  population  remains 


42   PROBLEMS  OF  CITY  GOVERNMENT 

satisfied  so  long  as  such  communication  is  made  easy  and 
rapid.  Not  that  the  people  do  not  desire  clean  streets, 
but  the  fact  that  dirty  streets  do  not  arouse  resentment 
sufficiently  strong  to  give  rise  to  positive  action  makes 
such  opinion  as  does  exist  ineffectual.  Standards  of 
efficiency  in  government  are  determined  by  the  dislikes 
rather  than  by  the  desires  of  the  population. 

The  problem  of  city  government  involves  more  than 
the  question  of  governmental  organization  or  reorganiza- 
tion. Its  successful  solution  requires  not  merely  the 
most  efficient  administrative  machinery,  but  such  a 
change  in  the  life  and  thought  of  the  people  as  will 
bring  an  increasing  number  of  city  services  into  organic, 
vital  relation  with  the  daily  life,  the  pleasures,  and  the 
recreations  of  the  population. 

REFERENCES 

ADAMS,  G.  B.     "Civilization  During  the  Middle  Ages."    New 

York:  Scribner's,  1894. 
ASHLEY,  W.  J.     "The  End  of  the  Middle  Ages."    New  York: 

Putnam's,  1893. 
BELOCH,  J.     "Bevolkerung  der  Griechisch-romanischen  Welt." 

Leipzig:  Duncker  &  Humblot,  1886. 
BLUMNER,  H.     "Home   Life   of   the   Ancient   Greeks."    New 

York:  Cassell,  1893. 
BOECKH,  A.     "The  Public  Economy  of  Athens"  (second  ed.). 

London:  Parker,  1847. 
BOISSIER,     GASTON.     "Promenades     Archaeologiques."    Paris: 

Levy. 


ANCIENT,    MEDIAEVAL,    MODERN    CITY     43 

CURTIUS,  E.  "Die  Stadtgeschichte  von  Athen."  Berlin: 
Weidmannsche,  1891. 

DILL,  S.  "Roman  Society  from  Nero  to  Marcus  Aurelius," 
Chap.  II.  London:  Macmillan,  1905. 

FERRERO,  G.  "Greatness  and  Decline  of  Rome,"  vol.  i.  Put- 
nam's, 1907. 

FOWLER,  W.  W.  "The  City-State  of  the  Greeks  and  Romans." 
New  York:  Macmillan,  1893. 

FREEMAN,  E.  A.  "The  Athenian  Democracy."  Macmillan, 
1875. 

G.IEEN,  MRS.  J.  R.  "Town  Life  in  the  Fifteenth  Century." 
Macmillan,  1894. 

GROSS,  C.  "The  Gild  Merchant."  Oxford:  Clarendon  Press, 
1890. 

GROTE,  G.     "  The  History  of  Greece."    New  York :  Harper,  1865. 

HEGEL,  KARL.  "Stadte  und  Gilden  der  Germanischen  Voelker 
im  Mittelalter."  Duncker  &  Humblot,  1891. 

JASTROW.  "Die  Entstehung  der  deutschen  Stadtgemeinde." 
Dusseldorf,  1889. 

LIEBMANN,  W.     " Stadtverwaltung  in  roemischen  Kaisereiche." 

MOMMSEN,  C.  M.     "History  of  Rome."     Scribner's,  1895. 

WEBER,  A.  F.  "The  Growth  of  Cities  in  the  Nineteenth  Cen- 
tury." Macmillan,  1899. 


CHAPTER   III 

THE   NATURE   OF   THE   MUNICIPAL   PROBLEM 

THE  institutional  history  of  ancient  and  modern 
communities  has  shown  that  the  vigorous  growth  and 
healthful  functional  activity  of  any  political  system  are 
dependent  upon  the  close  adjustment  of  three  factors — 
political  ideas,  political  forms,  and  political  problems. 
A  lack  of  harmony  between  any  two  of  these  soon  be- 
comes a  source  of  weakness  in  the  body  politic.  Real 
progress,  as  distinguished  from  temporary  expedients, 
is  to  be  measured  by  the  degree  of  adaptation  of  these 
factors  to  one  another. 

The  lack  of  definite  civic  standards  and  ideals,  the 
absence  of  an  intense  city  life,  the  failure  to  develop 
a  distinctive  form  of  municipal  government  and  to 
establish  definite  relations  between  the  municipality 
and  the  state  constitute  the  main  counts  in  the  indict- 
ment against  our  existing  system.  Whatever  may  be 
the  proximate  causes  of  these  shortcomings,  a  close 
analysis  will  show  at  the  basis  of  each  a  lack  of  adjust- 
ment among  these  three  factors. 

The  relation  between  the  form  of  city  government 
and  the  nature  of  city  problems  is  the  first  to  demand 

44 


THE    MUNICIPAL   PROBLEM  45 

our  attention.  Instead  of  organizing  our  municipalities' 
with  reference  to  the  problems  with  which  they  have 
to  deal,  we  have  applied  analogies  taken  from  our  state 
and  national  governments.  The  attempt  is  made  to 
separate  the  executive  from  the  legislative,  on  the  ground 
that  the  plan  has  worked  well  in  other  parts  of  our 
political  system.  The  legislative  organ  is  then  divided 
into  two  branches,  with  a  view  to  obtaining  a  system  of 
self-acting  guaranties  against  hasty  or  ill-advised  action. 
In  doing  this  we  do  not  stop  to  think  that  city  prob- 
lems are  primarily  of  an  administrative  rather  than  of 
a  political  character;  that  the  conditions  demanding  an 
independent  executive  and  justifying  a  bicameral  legis- 
lature are  wanting.  When,  as  in  England  of  the  eight- 
eenth century,  a  system  of  guaranties  to  personal  and 
property  rights  was  being  developed,  the  maintenance 
of  the  line  of  division  between  the  executive  and  the 
legislative  was  essential  to  political  progress.  Where 
fundamental  civil  and  political  rights  were  at  stake  the 
"  checks  and  balances  "  of  a  bicameral  legislature  con- 
stituted one  of  the  elements  of  political  strength.  The 
adoption  of  these  principles  of  organization  in  our  state 
and  federal  systems  may  be  justified  by  the  same  con- 
siderations. 

In  our  city  governments,  however,  none  of  these 
conditions  is  present.  Neither  the  mayor  nor  councils 
can  encroach  upon  the  civil  and  political  rights  of  the 
citizen.  Furthermore,  city  conditions  do  not  offer  the 


46   PROBLEMS  OF  CITY  GOVERNMENT 

possibility  of  a  bicameral  system  in  which  each  house 
shall  be  organized  through  different  constituencies.  Yet 
this  is  the  basic  idea  of  the  bicameral  principle.  The 
result  is  that  we  get  two  branches  of  the  local  legisla- 
ture of  much  the  same  makeup,  in  which  there  is  a  con- 
stant shifting  of  responsibility.  The  situation  is  further 
complicated  by  the  introduction  of  another  generally 
accepted  canon  of  political  organization,  viz.,  that  of 
district  representation.  From  the  petty  bargaining  be- 
tween local  interests  we  expect  to  develop  a  progressive 
municipal  policy. 

The  most  cursory  examination  of  municipal  prob- 
lems will  show  that  they  must  be  considered  from 
the  standpoint  of  the  community  as  a  whole,  and  that 
the  governmental  machinery  must  be  such  as  to  favor 
rather  than  to  impede  positive  action.  The  greatest 
danger  in  our  present  municipal  system  is  the  lack  of 
continuous  and  effective  responsibility.  The  enforce- 
ment of  responsibility  at  election  periods  is  wholly 
inadequate  to  guarantee  an  efficient  and  economical 
administration  of  municipal  affairs.  In  order  to  make 
such  responsibility  effective  it  must  be  constantly  en- 
forced by  the  watchfulness  of  public  opinion.  To  en- 
deavor to  pit  the  different  governmental  bodies  against 
one  another  is  the  surest  means  of  destroying  real  re- 
sponsibility, and  thereby  courting  the  introduction  of 
the  baneful  influences  that  have  marred  our  municipal 
history. 


THE    MUNICIPAL   PROBLEM  47 

Another  instance  of  a  complete  failure  of  adjust- 
ment, and  one  closely  connected  with  the  preceding,  is 
to  be  found  in  the  relation  existing  between  our  political 
ideas  and  methods  of  political  reasoning  and  the  form 
of  municipal  government.  The  idea  of  popular  gov- 
ernment, which  for  a  long  time  was  consistently  ap- 
plied throughout  our  municipal  system,  furnishes  an 
excellent  illustration  of  this  fact.  We  proceed  on  the 
assumption  that  the  best  means  of  insuring  responsi- 
bility is  through  popular  vote,  completely  ignoring  the 
fact  that  for  offices  requiring  preparatory  professional 
and  technical  training,  popular  opinion  cannot  apply 
the  proper  standards  nor  popular  vote  enforce  responsi- 
bility. The  evils  to  which  this  abuse  of  the  elective 
principle  led  have  compelled  us  to  modify  the  system. 
But  what  is  the  nature  of  the  change  we  have  made? 
The  elective  principle,  it  is  true,  has  been  sacrificed  in 
certain  cases;  a  system  of  appointment  of  departmental 
heads  by  the  mayor  has  been  adopted,  but  instead  of 
recognizing  that  from  the  very  nature  of  departmental 
work  these  officials  must  enjoy  fixity  of  tenure,  we  have 
taken  analogies  from  our  federal  system.  The  heads  of 
departments,  it  is  argued,  must  be  in  political  harmony 
with  the  mayor;  they  should  constitute  his  cabinet. 
The  sweeping  changes  made  after  each  mayoralty  elec- 
tion are  regarded  not  only  as  justified,  but  as  one  of 
the  means  of  registering  the  will  of  the  people.  A  little 
reflection  will  show  that  what  is  demanded  of  heads  of 


48   PROBLEMS  OF  CITY  GOVERNMENT 

departments  is  the  ability  to  plan  large  public  improve- 
ments, and  to  execute  in  the  most  economical  and  effi- 
cient manner  the  policy  of  the  local  legislative  assembly. 
This  is  practically  impossible  under  the  system  of  short 
tenure,  which  prevents  the  acquiring  of  that  intimate 
knowledge  of  departmental  work  so  necessary  to  efficient 
service,  and  acts  as  a  deterrent  to  the  adoption  of  plans 
for  great  public  improvements,  the  execution  of  which 
requires  a  long  term  of  years. 

The  root  of  the  evil  lies  in  a  mistaken  concept  of 
the  nature  of  administrative  responsibility  as  applied 
to  municipal  affairs.  That  individual  responsibility  of 
some  kind  must  exist  requires  no  argument ;  but  it  is 
equally  true  that  the  responsibility  in  the  administra- 
tion of  municipal  departments  is  different  from  that 
which  must  obtain  in  the  administration  of  national 
affairs.  In  local  affairs,  few  broad  questions  of  political 
policy  are  involved.  Details  of  departmental  adminis- 
tration in  our  cities  can  never  be  made  the  subject  of 
an  intelligent  judgment  by  the  mass  of  electors.  The 
usual  result  of  the  attempt  to  pass  upon  such  details  at 
popular  elections  is  that  the  efficiency  of  a  departmental 
head  is  gauged  by  one  or  two  subordinate  facts  which 
happen  to  attract  public  attention.  What  form,  then, 
shall  departmental  responsibility  take?  The  direction 
in  which  we  have  been  moving,  viz.,  appointment  of 
heads  of  departments  by  the  mayor  and  responsibil- 
ity to  him,  is  giving  satisfactory  results,  but  needs 


THE   MUNICIPAL   PROBLEM  49 

to  be  supplemented   by   a  more  permanent  tenure  of 
office. 

This  relation  between  municipal  organization  and 
municipal  progress  was  impressed  upon  me  with  peculiar 
force  in  the  course  of  a  conference  with  the  Charter 
Board  of  Kansas  City.  The  members  of  this  board, 
known  as  the  Board  of  Freeholders,  were  elected  by 
their  fellow  townsmen  to  frame  a  new  charter.  Under 
the  provisions  of  the  Missouri  Constitution *  all  cities 
with  a  population  of  100,000  or  over  may  frame  their 
own  charters  through  the  agency  of  a  local  charter 
convention,  and  such  charter  when  accepted  by  the 
people  takes  effect  immediately  without  any  action  on 
the  part  of  the  state  legislature.  The  only  require- 
ment is  that  such  charter  shall  conform  to  the  general 
laws  of  the  state.  The  relation  thus  established  between 
the  community  and  its  organic  law  has  exercised  an 
influence  on  the  civic  life  of  the  people  which  carries 
a  lesson  of  far-reaching  importance.  The  fact  that  the 
responsibility  for  the  framing  of  a  new  charter  rests 
not  with  the  state  legislature,  but  with  the  people  of 
the  community,  has  aroused  an  intensity  of  civic  spirit 
which  makes  itself  felt  in  every  department  of  the  city 
government.  Every  literary  and  scientific  organization 
in  the  city  was  discussing  the  question  of  the  new  char- 
ter, and  the  Board  of  Freeholders,  to  which  was  in- 
trusted the  function  of  framing  this  charter,  was  receiv- 

»  Art.  IX,  Sec.  16. 


50   PROBLEMS  OF  CITY  GOVERNMENT 

ing  dozens,  yes,  hundreds  of  propositions  for  changes 
in  existing  organization.  Every  municipal  service  was 
being  subjected  to  the  closest  scrutiny,  and  through  this 
discussion  there  was  developed  a  more  definite  as  well 
as  a  higher  standard  of  efficiency  which  the  people  of 
the  community  were  prepared  to  require  of  their  offi- 
cials. Entirely  independent  of  the  plan  of  municipal 
organization  that  may  be  adopted,  the  manner  of  its 
adoption  illustrates  how  governmental  machinery  may 
be  so  constructed  as  to  foster  and  develop  civic  alertness. 
Although  we  have  given  lip-service  to  the  principle 
that  governmental  machinery  reacts  on  civic  life,  we 
have  failed  to  observe  it  in  the  actual  conduct  of  munici- 
pal affairs.  In  most  American  communities  the  purpose 
seems  to  have  been  to  construct  a  self-acting  mechan- 
ism which  would  guarantee  good  government  and  secure 
honesty.  By  pitting  the  executive  against  the  legisla- 
tive authority,  by  electing  one  official  to  exercise  control 
over  another,  and  by  making  official  terms  as  short  as 
possible,  we  have  beguiled  ourselves  with  the  illusion 
that  it  is  possible  to  construct  a  machinery  of  govern- 
ment which  only  requires  the  attention  of  the  people 
at  stated  election  periods.  Our  statute  books  are  filled 
with  definitions  of  malfeasance  in  office  and  with  penal- 
ties for  derelictions  of  duty.  These  national  character- 
istics all  point  to  the  fact  that  we  are  a  people  with 
unlimited  faith  in  machinery  in  government  as  well  as 
in  industry. 


THE   MUNICIPAL   PROBLEM  51 

It  is  not  surprising  that  this  search  for  self-acting 
machinery  of  government  has  proved  fruitless.  We  are 
simply  trying  to  relieve  ourselves  of  an  obligation  which 
we  cannot  throw  off.  The  history  of  municipal  govern- 
ment in  the  United  States  has  proved  that  one  of  the 
primary  tests  of  efficient  municipal  organization  is  the 
extent  to  which  such  organization  not  only  develops,  but 
demands  the  alertness  and  watchfulness  of  the  people. 
Any  form  of  government  which  arouses  in  the  people 
the  belief  that  they  have  constructed  a  self-acting  mech- 
anism not  only  tends  to  lower  the  standard  of  civic 
effort,  but  relieves  the  government  of  that  salutary  con- 
trol of  public  opinion  without  which  efficient  govern- 
ment is  impossible. 

New  York  City  has  advanced  to  a  clearer  perception 
of  this  truth  than  has  any  other  large  city  of  the  Union. 
The  abolition  of  the  bicameral  legislature,  the  concen- 
tration of  appointive  power  in  the  mayor,  the  relatively 
long  terms  of  heads  of  departments,  have  marked  the 
successive  stages  toward  the  realization  of  this  truth. 
In  this  process  the  representative  assembly  of  the  city 
has  been  reduced  to  a  position  of  relative  significance. 
Although  we  may  criticise  the  form  of  government 
which  has  resulted,  the  instinct  that  has  guided  the 
public  has  been  a  healthy  one.  Under  the  present  form 
of  government  the  power  vested  in  the  mayor  is  so 
great  that  the  community  feels  the  necessity  of  watch- 
ing his  policy  at  every  step.  The  form  of  government 


52       PROBLEMS    OF    CITY^   GOVERNMENT 

demands  alertness,  and  the  people  have  responded  to 
this  demand.  The  very  fact  that  this  concentration  of 
executive  power  involves  dangers  has  exercised  a  pow- 
erful influence  on  the  attitude  of  the  people  toward  the 
government. 

Before  we  can  secure  good  government  in  our  Amer- 
ican communities  it  is  not  only  necessary  to  abolish  this 
f etichism  of  governmental  machinery,  but  so  to  construct 
that  machinery  as  to  make  the  control  of  public  opinion 
both  easy  and  effective.  We  have  too  long  clung  to  the 
belief  that  popular  government  means  the  election  of 
a  large  number  of  public  officials.  Tempted  by  this 
belief  we  have  stretched  the  elective  principle  far  be- 
yond its  possibilities,  and  in  many  instances  have  made 
it  a  source  of  governmental  weakness.  There  is  no  rea- 
son in  the  nature  of  things  why  the  city  attorney,  solici- 
tor, treasurer,  or  receiver  of  taxes  should  be  elected  by 
the  people.  The  application  of  the  elective  principle  to 
these  offices  tends  to  divert  the  minds  of  the  people 
from  the  really  important  executive  offices,  and  so 
divides  responsibility  that  its  enforcement  becomes  in- 
creasingly difficult.  Here,  again,  we  must  modify  be- 
liefs which  we  have  inherited  from  a  period  when  the 
appointment  of  local  officials  was  an  indication  of  monar- 
chical or  despotic  power.  The  essence  of  popular  gov- 
ernment is  such  popular  control  as  will  enforce  certain 
definite  standards  of  efficiency  in  the  administration  of 
public  affairs.  That  control  can  best  be  exercised  when 


THE   MUNICIPAL   PROBLEM  53 

it  is  directed  toward  one  or  at  most  two  or  three  execu- 
tive officials. 

There  is  every  indication  that  we  are  gradually 
adapting  our  political  beliefs  to  the  manifest  require- 
ments of  our  municipalities.  In  this  process  of  adapta- 
tion we  must  be  prepared  to  make  many  changes,  both  in 
the  organization  of  our  government  and  in  our  attitude 
toward  that  government.  Whatever  these  changes  may 
be,  anything  that  tends  to  diminish  the  alertness  of  the 
population  will  to  that  extent  lower  the  tone  of  its  civic 
life.  The  relation  between  city  and  state  and  the  organ- 
ization of  the  city  government  must  be  arranged  so  as 
to  foster  this  alertness,  and  the  mechanism  of  govern- 
ment must  be  so  adjusted  as  to  make  both  the  control 
of  public  opinion  and  the  enforcement  of  responsibility 
easy,  ready,  and  effective. 

The  discussion  up  to  this  point  has  had  to  do  mainly 
with  the  organization  of  our  municipal  institutions.  A 
question  of  far  greater  complexity  remains  to  be  con- 
sidered. The  proper  adjustment  of  civic  and  political 
standards  to  the  conditions  of  city  life  is  a  matter  of 
such  fundamental  importance  that  upon  it  the  whole 
municipal  problem  may  be  said  to  rest.  Viewed  in  this 
light,  municipal  reform  becomes  something  more  than 
a  governmental  problem.  It  assumes  the  proportions 
of  a  great  social  question  upon  which  the  future  of  the 
race  depends.  That  the  city  is  something  more  than  a 
mere  aggregate  of  individuals  requires  no  demonstration, 


54       PROBLEMS    OF    CITY    GOVERNMENT 

but  that  the  peculiar  conditions  developing  out  of  such 
close  aggregation  demand  a  change  in  our  civic  and 
political  standards  is  a  fact  which  has  not  received  such 
general  recognition.  An  examination  of  the  conditions 
of  city  life,  especially  in  the  large  centers  of  population, 
will  show  the  far-reaching  effects  of  two  leading  char- 
acteristics : 

First. — The  close  interdependence  of  the  units,  and 
the  sensitiveness  of  the  whole  body  politic  to  the  stand- 
ards of  individual  action. 

Second. — The  artificial  character  of  the  city  envi- 
ronment. 

The  simple  and  elementary  fact  of  the  concentration 
of  population  within  a  comparatively  small  area  brings 
with  it  the  necessity  of  adapting  individual  conduct  to 
such  new  conditions.  A  new  concept  of  individual  re- 
sponsibility and  of  the  possibilities  of  organized  action 
must  be  developed.  But  what,  it  will  be  asked,  is  the 
nature  of  these  higher  civic  standards;  and  what  cir- 
cumstances or  forces  are  to  contribute  to  their  devel- 
opment? The  usual  answer  to  this  question  may  be 
summarized  as  follows:  Once  get  the  people  to  appre- 
ciate the  fact  that  good  city  government  pays,  that  the 
material  advantages  to  be  derived  from  the  efficient  per- 
formance of  services  will  more  than  compensate  for  the 
energy  expended,  and  your  problem  is  solved.  While 
no  one  would  deny  the  importance  of  this  factor  in 
certain  specific  cases,  it  is  equally  certain  that  this  utili- 


THE    MUNICIPAL    PROBLEM  55 

tarian  calculation  does  not  and  cannot  furnish  a  per- 
manent basis  for  civic  progress.  Such  advance  must 
come,  if  it  comes  at  all,  from  new  standards  of  action, 
created  through  the  recognition  of  the  full  meaning  of 
a  better  city  environment  and  from  the  belief  that  the 
city  contains  within  itself  the  possibility  of  the  highest 
type  of  social  life.  Under  such  conditions  civic  activity 
results,  not  from  the  balancing  of  effort  and  return, 
but  rather  from  the  new  meaning  which  the  city,  as  an 
organic  and,  in  many  respects,  ideal  unit  has  attained. 
If  we  stop  for  a  moment  to  consider  the  motives 
underlying  the  devotion  to  national  honor  and  dignity 
and  the  ever-ready  and  willing  sacrifice  in  the  interest 
of  the  "  home,"  the  tremendous  power  of  this  civic 
force  will  be  apparent.  As  yet,  however,  no  such  tradi- 
tions and  associations  have  clustered  themselves  about 
our  American  cities.  We  are  continually  asking  our- 
selves whether  it  pays  to  take  an  hour  from  business 
activity  or  from  family  comforts  to  be  devoted  to  the 
good  of  the  city.  So  long  as  the  city  represents  little 
more  than  an  ordinary  private  corporation,  furnishing 
police  protection,  drainage,  water,  etc.,  a  negative 
answer  is  to  be  expected.  Examine  for  a  moment  the 
attitude  of  the  great  middle  class.  The  tidiness  of  the 
household  interior  is  a  matter  of  great  pride,  but  no 
aesthetic  or  moral  sense  is  disturbed  by  filthy  streets,  or 
if  so,  the  disturbance  is  but  momentary.  The  garden 
or  small  back  yard,  enjoyed  in  the  seclusion  of  the  fam- 


56   PROBLEMS  OF  CITY  GOVERNMENT 

ily,  is  placed  in  the  balance  as  against  a  public-park 
system,  resulting  in  indifference  to  the  latter.  A  public 
supply  of  pure  water  is  balanced  with  the  possibility 
of  purchasing  a  filter.  The  discomforts  of  the  over- 
crowded street  car  do  not  weigh  heavily,  because  the 
ride  represents  the  comparatively  short  period  between 
the  exclusiveness  of  the  business  and  the  isolation  of  the 
home.  Although  these  facts  imply  many  admirable 
qualities  of  domesticity,  they  also  show  grave  defects  in 
our  civic  life.  To  remedy  these  defects  is  at  present  the 
primary  problem  of  American  city  life.  Is  it  possible 
for  the  community  to  adopt  a  policy  favoring  the 
growth  of  the  new  civic  standards,  or  are  we  entirely 
dependent  upon  the  play  of  natural  forces,  the  slow 
process  of  the  struggle  for  existence  and  the  survival  of 
the  fittest  ? 

The  answer  to  this  question  would  necessitate  an 
exhaustive  examination  of  the  conditions  of  the  city 
environment,  the  process  of  natural  selection,  and  the 
probability  of  the  survival  of  a  higher  type  through 
the  operation  of  this  process.  Whatever  future  investi- 
gation may  show,  our  present  knowledge  of  the  process 
of  social  evolution  points  to  possibilities  in  municipal 
activity  which  have  been  completely  neglected  in  most 
American  cities.  By  far  the  strongest  force  at  the  dis- 
posal of  the  municipality  is  the  influence  of  organized 
effort  on  the  standard  of  life  of  the  community.  When 
combined  with  this  we  have  the  clear  recognition  by  the 


THE    MUNICIPAL    PROBLEM  57 

citizen  body  of  the  influence  thus  exerted,  an  irresistible 
force  making  for  civic  progress  is  at  work.  The  expe- 
rience of  the  cities  of  England  and  Scotland  is  of  special 
value  to  us,  because  of  the  similarity  in  environmental 
conditions.  Even  the  casual  observer  cannot  help  feel- 
ing that  the  British  town  population  is  developing  a 
new  concept  of  municipal  activity,  that  the  people  have 
begun  to  realize  that  upon  the  concerted  action  of  the 
community  depends  to  a  very  large  extent  the  kind  of 
life  which  the  mass  of  the  community  shall  lead.  The 
first  glimpse  of  the  truth  of  this  fact  brings  with  it  a 
new  attitude  toward  the  city. 

The  civic  activity  of  the  community  may  be  divided 
into  two  classes : 

First. — Those  efforts  directly  modifying  the  environ- 
ment, and  thus  indirectly  influencing  the  standard  of 
life. 

Second. — Those  directly  affecting  the  standard  of 
life  through  the  offering  of  new  services  or  commodities. 

In  the  animal  world  the  adaptation  to  purely  natu- 
ral conditions  and  the  unrestricted  struggle  for  exist- 
ence may  be  necessary  to  preserve  "  the  speed  of  the 
antelope  undiminished  and  the  sight  of  the  eagle  un- 
dimmed,"  yet  the  moment  we  enter  the  field  of  human 
society  we  have  the  struggle  modified  at  many  points, 
due  to  the  development  of  social  instincts  and  class  feel- 
ings. And  it  is  well  that  it  is  so,  for,  as  Huxley  has 
shown,  evolution  does  not  necessarily  mean  progress, 


nor  is  the  cosmic  process  necessarily  identical  with  the 
ethical  process.  With  the  growth  of  social  relations 
incident  to  the  development  of  city  life  man  becomes  to 
an  increasing  extent  the  product  of  social  as  distin- 
guished from  purely  natural  forces.  His  mental  and 
moral  traits  are  determined  largely  by  his  environment, 
but  it  is  an  environment  furnished  him  by  the  com- 
munity rather  than  by  nature.  This  view  of  the  sub- 
ject carries  with  it  a  new  element  of  responsibility.  If 
the  city  environment  is  to  determine  the  character  of 
the  city  man,  the  importance  of  making  the  environ- 
ment favorable  to  the  development  of  the  highest  type 
becomes  apparent.  The  fullest  utilization  of  this  power 
of  the  community  is  made  all  the  more  necessary  by 
reason  of  the  improved  condition  both  as  regards  the 
wages  and  the  hours  of  labor  of  the  working  classes. 

For  the  first  time  in  the  history  of  modern  countries, 
leisure  has  become  a  possibility  not  to  a  privileged  circle, 
but  to  all  classes.  This  is  particularly  true  in  the  large 
cities,  where  we  have  combined  the  highest  average 
income  with  a  comparatively  short  working  day.  While 
this  increase  of  income  has  been  dwelt  upon  by  many 
writers,  little  attention  has  been  given  to  the  use  made 
of  the  consequent  leisure.  We  have  hardly  begun  to 
realize  the  extent  to  which  its  use  is  dependent  on  the 
opportunities  offered  by  the  community,  and  how  closely 
it  is  bound  up  with  the  character  of  the  environment. 
With  an  unfavorable  environment  leisure  inevitably 


THE    MUNICIPAL    PROBLEM  59 

becomes  the  source  of  racial  degeneracy  and  social  dis- 
integration. Under  favorable  conditions,  on  the  other 
hand,  it  constitutes  one  of  the  strongest  forces  making 
for  progress.  At  si  certain  stage  in  social  evolution  the 
possibility  of  leisure  becomes  the  condition  requisite  for 
further  progress.  The  manner  of  its  use  will  determine 
whether  the  community  is  to  take  the  next  step  in  pro- 
gressive evolution  or  whether  the  temptations  which 
leisure  brings  with  it  will  lead  to  retrogression  and  ulti- 
mate decline.  Viewed  in  this  light,  the  judicious  dis- 
tribution of  parks,  play  and  recreation  grounds,  the 
adjustment  of  street-railway  fares  with  a  view  to  pro- 
moting travel,  the  creation  of  a  system  of  municipal 
theaters  offering  the  best  that  dramatic  literature  affords 
— all  these  institutions,  and  many  more,  acquire  a  new 
significance.  When  the  failure  to  provide  a  proper 
environment  leads  to  the  development  of  forces  endan- 
gering the  future  of  the  race,  the  question  of  municipal 
activity  becomes  one  of  fundamental  importance.  When 
the  creation  of  new  municipal  institutions  means  a  new 
mode  of  life,  and  a  new  view  of  life  for  the  mass  of 
the  community,  the  attitude  of  the  population  toward 
the  city  and  its  government  becomes  a  matter  of  vital 
importance. 

The  city  is  no  longer  regarded  as  a  necessary  evil; 
it  is  recognized  as  the  accompanying  factor  of  all  civ- 
ilization. Only  under  the  conditions  of  city  life  can  the 
possibilities  of  human  development  be  realized.  This 


does  not  mean  that  the  city  should  be  a  monotonous 
succession  of  narrow  and  depressing  thoroughfares,  that 
every  available  open  space  should  be  covered  with  flar- 
ing signs,  that  at  every  street  corner  there  should  be  a 
saloon,  and  that  every  individual  should  be  permitted 
to  give  free  range  to  his  fancy  in  the  erection  of  dwell- 
ings. Through  the  construction  of  parkways,  the  erec- 
tion of  imposing  public  buildings,  a  change  in  the  im- 
mediate environment  of  the  poorer  classes,  and,  finally, 
the  acceptance  of  the  social  standard  in  the  performance 
of  municipal  services,  a  new  concept  of  municipal  activ- 
ity and  of  city  life  will  be  attained. 

The  question  of  greatest  interest  in  this  connection 
is  the  ultimate  effect  of  this  view  of  municipal  serv- 
ices on  the  civic  standards  and  activities  of  the  com- 
munity. The  great  problem  of  the  social  reformer,  it 
has  been  said,  is  to  get  the  people  to  use  their  im- 
agination. John  Stuart  Mill  put  this  in  another  form 
when  he  said  that  "  one  person  with  a  belief  is  a 
social  power  equal  to  ninety-nine  who  have  only  in- 
terests." Belief  in  the  possibility  of  a  higher  type  of 
civic  life  can  come  only  from  the  creation  of  new  ideals. 
The  primary  elements  of  such  ideals  must  be  found 
in  existing  conditions.  The  citizen  is  then  in  a  posi- 
tion to  make  new  combinations,  to  add  new  elements 
to  such  combinations,  and,  finally,  to  picture  to  himself 
an  ideal  city  environment.  The  first  effects  of  this 
change  will  be  of  a  negative  character.  The  community 


THE    MUNICIPAL    PROBLEM  61 

will  no  longer  tolerate  methods  of  action  which  are  now 
regarded  with  indifference.  A  new  sensitiveness  which 
is  the  necessary  condition  to  higher  standards  will  be 
developed.  The  overcrowded  street  car,  the  advertise- 
ment-covered fence,  the  filthy  alleyways  will  arouse  the 
active  condemnation  of  the  community.  Opinion  will 
thus  reach  its  true  position  as  a  great  social  force  in  city 
life.  From  these  more  negative  standards  there  will  be 
a  gradual  advance  to  positive  standards.  The  new  civic 
standards  based  upon  distinctively  city  ideals  will  assure 
that  devotion  to  the  public  good  upon  which  the  future 
of  American  city  life  and  the  efficient  working  of  all 
forms  of  government  must  ultimately  depend. 

REFERENCES 

GIERKE.     "Das  deutsche  Genossenschaf tsrecht, "  vol.  i. 

POLLARD,  J.  "A  Study  in  Municipal  Government:  The  Cor- 
poration of  Berlin"  (second  ed.,  rev.).  Edinburgh  and 
London:  Blackwood,  1894. 

SHAW,  A.  "Municipal  Government  in  Great  Britain."  New 
York:  Century,  1895. 

VINE,  J.  R.  S.  "English  Municipal  Institutions."  London: 
Waterlow,  1879. 

WILCOX,  D.  F.  "  The  Study  of  City  Government."  New  York : 
Macmillan,  1897. 


CHAPTER   IV 

THE   SOCIAL.   CONSEQUENCES   OF   CITY   GROWTH 

THE  migration  of  the  country  population  into  the 
cities,  while  not  the  most  important,  is  certainly  the 
most  striking  of  the  social  phenomena  incident  to  city 
growth.  The  violent  opposition  which  this  movement 
first  aroused  was  the  expression  of  a  deeply  rooted  moral 
antagonism  to  city  life.  That  the  city  is  a  necessary 
evil,  the  center  of  vice  and  the  nursery  of  crime,  per- 
vades the  theological  literature  of  the  eighteenth  cen- 
tury. To  avoid  its  temptations  was  one  of  the  first 
precepts  of  Puritan  morality.  The  cry  of  the  French 
philosophers — "  return  to  nature  " — was  largely  a  re- 
action against  the  conventionalities  of  city  and  court 
life.  Under  the  circumstances,  it  is  not  surprising  that 
the  political  philosophy  of  the  present  century  should 
take  a  pessimistic  view  of  the  future  of  a  civilization 
which  is  building  up  its  cities  at  the  expense  of  the 
country  districts. 

A  broader  grasp  of  the  process  of  social  evolution, 
supplemented  by  a  more  thorough  analysis  of  the  condi- 
tions of  city  life,  has  considerably  modified  this  view  of 
our  social  development.  It  is  true  that  the  conditions 

62 


SOCIAL   CONSEQUENCES    OF    GROWTH     63 

prevailing  in  the  cities  of  the  eighteenth  century  and 
the  first  half  of  the  nineteenth  century  justified  the  pes- 
simistic predictions  as  to  the  future  of  a  civilization 
which  was  building  up  its  cities  at  the  expense  of  the 
rural  districts.  Until  the  beginning  of  the  nineteenth 
century  the  urban  death  rate  was  so  high  that  migration 
from  the  rural  districts  was  the  only  means  of  city  in- 
crease. It  was  evident  to  the  social  philosophers  of  the 
eighteenth  century  that  if  this  excess  of  deaths  over 
births  was  a  necessary  accompaniment  of  city  life,  the 
nations  of  western  Europe  were  condemned  to  gradual 
extinction. 

This  reasoning,  which  was  based  on  conditions  of  a 
bygone  age,  has  perpetuated  itself  in  our  modern  phi- 
losophy and  is  responsible  for  much  of  the  opposition 
to  city  growth.  The  conditions  upon  which  it  is  based, 
however,  have  totally  changed.  The  extraordinary  ad- 
vance in  urban  sanitation  has  made  the  cities  not  only 
self-sustaining  but  is  rapidly  placing  them  in  a  more 
favorable  position  than  the  rural  districts,  owing  to  the 
fact  that,  as  a  rule,  the  birth  rate  in  cities  is  higher 
than  in  the  country. 

France  is  the  only  country  in  which  the  conditions 
which  were  universal  during  the  eighteenth  century  still 
obtain  to  a  certain  extent.  Of  the  twelve  larger  cities 
six  are  unable  to  maintain  their  present  population 
through  natural  increase.1  Of  the  total  growth  of  ur- 
i  Weber,  "  Growth  of  Cities,"  p.  239. 


64   PROBLEMS  OF  CITY  GOVERNMENT 

ban  population  eighty-seven  per  cent  is  due  to  migration 
from  the  rural  districts.  Professor  Lagneau,1  in  an  in- 
teresting comparative  study  of  the  population  of  France 
and  of  the  Department  of  the  Seine,  has  shown  the  in- 
fluence of  reduced  vitality  upon  the  population.  The 
following  table  shows  the  average  number  of  survivors 
of  every  ten  thousand  infants  born  in  France  as  corn- 
pa  ret!  with  the  same  number  ill  the  Department  of  the 
Seine : 


AGE. 

OF  10,000  INFANTS  BORN 
THERE  ARE  SURVIVING  IN 

France. 

Department 
of  Seine.* 

From    0  to    5  years  

7,035 
6,620 
6,392 
6,111 
5,452 
4,880 
4,227 
3,353 
2,163 
714 
61 

4,897 
4,675 
4,561 
4,313 
3,567 
2,918 
2,288 
1,588 
847 
247 
22 

From    5  to  10  years  

From  10  to  15  years  

From  15  to  20  years  

From  20  to  30  years  

From  30  to  40  years  

From  40  to  50  years  ... 

From  50  to  60  years  

From  60  to  70  years.        

From  70  to  80  years             .        .        .    . 

From  80  to  90  years  

*  The  Department  of  the  Seine  contains  Paris  and  two  small 
communes. 

According  to  the  same   author,   10,000   native-born 
Parisians  leave  only  5,996  descendants.     So  rapid  is  the 


1  Lagneau,    "Essai    de     Statistique     Anthropologique    sur    la 
Population  Parisienne."     Cited  by  Meuriot,  op.  cit. 


SOCIAL    CONSEQUENCES    OF    GROWTH     65 

decline  that  with  the  eighteenth  generation  the  entire 
population  would  disappear. 

In  Germany,  Sweden,  Austria,  and  Hungary  from 
twenty-five  to  fifty  per  cent  of  the  total  growth  of  urban 
population  is  due  to  natural  increase,  namely,  excess  of 
births  over  deaths.  In  England  the  death  rate  in  the 
towns  is  higher  than  in  the  rural  districts,  but  the  birth 
rate  is  also  considerably  higher.  The  natural  increase 
in  population  is  the  same  in  both  rural  and  urban  dis- 
tricts. In  the  United  States  the  improvement  in  the 
conditions  of  sanitation  has  been  such  that  the  cities  now 
show  a  larger  natural  increase  than  the  rural  districts. 

Thus  the  old  doctrine  that  a  civilization  which  rested 
on  urban  conditions  was  doomed  to  extinction  has  no 
longer  a  foundation  in  fact.  The  experience  of  the  last 
few  decades  has  shown  that  it  is  within  the  power  of 
the  community  so  to  adjust  the  conditions  of  city  life 
that  instead  of  reducing  vitality  and  producing  racial 
degeneracy  and  decay,  they  shall  tend  to  eliminate  the 
causes  of  disease  and  strengthen  rather  than  reduce 
vitality. 

Whether  we  regard  the  phenomenon  of  rural  migra- 
tion as  contributing  to  social  progress  or  retarding  it,  an 
examination  of  the  causes  determining  the  change  will 
show  that  the  movement  is  one  which  legislation  cannot 
check.  The  forces  at  work  in  modern  society  have  not 
only  increased  the  attractiveness  of  city  life,  but  have 
also  weakened  the  economic  and  social  ties  of  the  rural 


66   PROBLEMS  OP  CITY  GOVERNMENT 

population.  The  economic  history  of  Europe  during 
the  last  thirty  years  has  shown  that  we  are  in  the  midst 
of  a  period  of  falling  agricultural  prices.  While  there 
may  have  been  a  temporary  rise  in  prices  in  one  section 
or  another,  the  general  trend  has  been  downward.  A 
large  part  of  the  change  has  been  due  to  the  opening 
up  of  new  resources,  of  new  possibilities  in  the  produc- 
tion of  food.  In  the  readjustment  of  productive  forces 
it  is  evident  that  the.  farmers  in  the  less  favored  dis- 
tricts must  suffer.  Only  those  who  are  in  the  vanguard 
of  improvement  will  be  able  to  maintain  the  struggle 
with  the  new  conditions.  Complaints  will  probably 
increase  with  each  year  in  all  those  sections  that  have 
not  a  distinct  world  advantage  in  the  raising  of  food 
products.  It  is  a  significant  fact  that  in  England  be- 
tween the  years  1870  and  1891  the  acreage  of  cultivated 
wheat  land  decreased  47.67  per  cent.  The  constant 
increase  in  the  average  size  of  the  farm  has  lessened 
the  possibilities  of  profitable  employment  and  contrib- 
uted in  no  small  measure  to  the  rural  exodus.  In  Great 
Britain  and  Ireland  12,477  persons  own  two  thirds  of 
the  land. 

The  uniformity  and  monotony  of  country  life  must 
also  be  taken  into  account  as  one  of  the  social  causes 
making  it  distasteful.  The  influence  of  this  factor  will 
probably  be  seen  more  clearly  in  an  examination  of 
the  social  attractions  of  the  city.  As  Mr.  Pearson  has 
well  said :  ' '  To  the  country  yokel  the  city  is  an  unend- 


SOCIAL    CONSEQUENCES    OF    GROWTH     67 

ing  romance. ' ' 1  The  variety  of  pleasures,  the  excite- 
ment, and  constant  change  characteristic  of  city  life, 
the  gratification  of  the  social  instincts  which  these  con- 
ditions afford,  prove  an  irresistible  attraction  to  those 
who  have  been  brought  up  under  rural  conditions. 
Then,  too,  most  of  these  pleasures  are  enjoyed  without 
cost.  Whatever  or  whenever  the  hour  of  leisure,  the 
inhabitant  of  the  city  is  sure  to  find  unlimited  oppor- 
tunities for  indulgence  in  social  pleasures.  When  to 
this  we  add  the  higher  rate  of  wages  and  the  shorter 
hours  of  labor  in  cities  as  compared  with  country  dis- 
tricts, the  attraction  of  urban  centers  is  readily  ex- 
plained. The  great  social  demand  of  modern  times  is 
leisure,  and  in  the  choice  of  employment  we  find  those 
occupations  given  the  preference  in  which  the  amount 
of  leisure  time  is  the  greater,  even  if  the  choice  involves 
a  lower  rate  of  wages.  It  is  only  necessary  to  contrast 
the  position  of  the  shopgirl  with  that  of  the  domestic 
servant  to  be  convinced  of  this  fact. 

In  addition  to  this  social  cause  there  are  a  number 
of  economic  reasons  that  tend  to  increase  the  induce- 
ment to  migrate  from  the  country  into  the  cities.  The 
city  offers  a  variety  of  industrial  opportunity,  which 
makes  it  possible  to  utilize  every  special  capacity  or 
talent.  It  is  not  surprising,  therefore,  to  find  the  most 
energetic  and  the  most  capable  migrating  to  the  cities, 
where  the  division  of  labor  and  the  possibility  of  spe- 

1  Pearson,  "National  Life  and  Character." 


68   PROBLEMS  OF  CITY  GOVERNMENT 

cialization  are  greatest.  The  greater  educational  advan- 
tages of  the  city  constitute  another  inducement  to  leave 
the  country.  Not  only  the  thoroughly  organized  elemen- 
tary-school system,  but  also  the  development  of  technical 
schools,  of  museums,  libraries,  and  public  lectures  con- 
stitute a  powerful  attraction  to  the  more  intelligent  of 
the  country  population. 

On  the  continent  of  Europe  we  find  an  additional 
cause,  absent  in  American  communities,  namely,  the 
universal  military  service.  It  is  the  custom  to  place 
the  recruits  from  the  country  districts  in  cities  for  the 
period  of  military  service.  After  enjoying  the  pleas- 
ures of  city  life  for  a  number  of  years,  few  are  willing 
to  return  to  the  country.  As  a  result,  there  has  been 
a  constant  accretion  to  the  city  population,  due  to  the 
continued  residence  in  the  city  of  those  who  have  com- 
pleted their  military  service. 

With  such  a  combination  of  forces  at  work,  it  is 
easy  to  account  for  the  failure  of  the  attempts  that  have 
been  made  through  legislation  to  counteract  the  effect 
of  this  movement.  In  the  countries  of  continental 
Europe,  where  the  paternal  eye  of  government  has 
looked  upon  the  change  as  involving  serious  dangers, 
these  attempts  have  proved  futile.  During  the  last 
twenty-five  years  most  of  the  countries  of  Europe  have 
reorganized  their  local  rural  institutions,  with  a  view 
to  increasing  the  vigor  of  local  political  life.  The  Prus- 
sian reforms  of  1872  and  1876,  the  English  County 


SOCIAL   CONSEQUENCES   OF    GROWTH     69 

Council  Act  of  1888,  and  the  Parish  Councils  Act  of 
1894  were  intended  to  give  to  the  local  rural  divisions 
a  more  democratic  form  of  government.  It  was  hoped 
that  the  increase  of  political  interest  would  tend  to 
strengthen  the  attachment  of  the  population  to  such 
local  districts. 

Again,  the  attention  which  has  been  given  in  recent 
years  to  the  development  of  educational  facilities  in  the 
country  districts  has,  in  part  at  least,  been  dictated  by 
the  desire  to  strengthen  local  ties.  Another  class  of 
measures  attempts  to  counteract  the  movement  by  direct 
coercion.  For  instance,  in  Germany  the  Poor  Law  au- 
thorities have  the  power  to  repatriate  inhabitants  from 
the  rural  districts  who  are  likely  to  become  charges 
upon  the  community.  The  system  of  labor  colonies  is 
designed  to  relieve  the  pressure  of  population  in  the 
cities.  As  late  as  1891  a  proposition  was  made  and 
seriously  considered  in  the  Prussian  Diet  to  limit  the 
freedom  of  change  of  domicile  in  such  a  way  as  to  pre- 
vent migration  from  the  rural  districts  of  those  whose 
equipment  and  economic  condition  did  not  warrant  the 
change.  It  must  be  remembered  that  the  right  of  un- 
restricted migration  from  one  part  of  the  kingdom  to 
another  was  not  recognized  in  Prussia  until  1867,  and  it 
seems  likely  that  its  present  recognition  will  be  modified 
in  order  to  check  the  depopulation  of  the  rural  districts. 
The  lessons  of  this  varied  experience  make  it  clear  that 
the  movement  from  the  country  districts  into  the  cities 


70   PROBLEMS  OF  CITY  GOVERNMENT 

is  one  of  those  great  social  changes  which  we  cannot 
hope  to  counteract.  While  it  involves  certain  definite 
dangers,  they  are  dangers  incident  to  progress. 

Individual  as  well  as  racial  progress  involves  an  end- 
less series  of  adaptations  to  environmental  conditions. 
Every  change  in  the  conditions  of  life  makes  new  de- 
mands upon  the  individual.  Failure  to  meet  new  re- 
quirements carries  with  it  a  corresponding  disadvantage 
in  the  struggle  for  existence.  For  the  individual  and 
the  class  this  means  gradual  elimination  from  the  com- 
munity through  the  manifold  agencies  of  natural  selec- 
tion, such  as  disease  and  vice,  or  of  artificial  selection 
operating  through  the  criminal  code  and  the  poor  law. 

An  excellent  instance  of  the  process  of  elimination 
acting  upon  the  classes  unable  to  resist  the  temptations 
of  city  life  is  to  be  found  in  the  application  of  the  crimi- 
nal law.  It  is  usually  assumed  that  the  city  population 
shows  a  distinctly  lower  moral  tone  than  the  population 
of  the  rural  districts,  and  in  support  of  this  view  the 
greater  number  of  misdemeanors  and  crimes  committed 
in  the  cities  is  usually  cited.  If  the  figures  alone  are 
considered  the  contention  seems  justified.  Thus  in  a 
comparison  of  ten  agricultural  and  industrial  counties 
of  England,  we  find  in  the  former  0.71  crimes  and  13.84 
misdemeanors  per  thousand  inhabitants;  whereas  in  the 
industrial  counties  the  percentage  is  0.90  crimes  and 
23.81  misdemeanors  per  thousand  inhabitants.  Again, 
in  the  rural  districts  of  France  the  number  of  criminal 


SOCIAL   CONSEQUENCES    OF    GROWTH     71 

accusations  amounts   to  0.7   per   thousand   inhabitants, 
whereas  in  the  urban  centers  the  proportion  is  1.4. 

Further  analysis  discloses  the  fact  that  so  far  as 
offenses  against  the  person  are  concerned,  the  propor- 
tion is  nearly  the  same  in  rural  and  urban  districts; 
whereas  there  is  a  wide  discrepancy  in  favor  of  the  rural 
districts  in  the  offenses  against  property.  This  fact 
must  lead  us  to  quite  a  different  conclusion  as  to  the 
moral  tone  of  the  country  as  compared  with  the  city, 
for  in  the  offenses  against  the  person  we  have  a  very 
much  more  effective  test  of  moral  strength  than  in  the 
offenses  against  property.  It  is  evident,  even  to  the 
casual  observer,  that  the  opportunities  and  temptations 
to  violate  property  rights  are  far  more  numerous  in  the 
city  than  in  the  country  districts.  The  mere  fact  of 
increased  density  of  population  brings  individuals  into 
relations  with  one  another  which  require  far  greater 
self-control  to  avoid  encroachment  upon  property  rights 
than  is  the  case  in  the  rural  districts.  For  instance,  the 
temptations  to  business  dishonesty  of  different  kinds, 
such  as  the  adulteration  of  food  products,  fraudulent 
bankruptcies,  and  the  like,  are  infinitely  greater  in  the 
larger  cities.  Furthermore,  the  greater  division  of 
labor  in  the  urban  centers  leads  to  the  introduction  of 
large  numbers  of  persons  into  the  household  performing 
minor  services,  and  thus  increases  the  temptations  to 
petty  thefts.  We  must  therefore  be  extremely  careful 
in  drawing  conclusions  as  to  the  moral  standards  of  city 


72   PROBLEMS  OF  CITY  GOVERNMENT 

life  from,  criminal  statistics  alone.  This  situation,  when 
viewed  from  the  broad  standpoint  of  social  evolution, 
points  to  the  conclusion  that  under  the  conditions  of  city 
life  those  who  lack  the  moral  fiber  necessary  to  with- 
stand these  additional  temptations  are  temporarily  or 
permanently  eliminated  from  society;  peopling  our 
houses  of  correction,  jails,  and  prisons.  While,  there- 
fore, to  the  individual,  lack  of  self-control  means  elimi- 
nation from  society,  it  involves  gradual  extinction  for 
the  community  unless  new  and  better  elements  are  con- 
stantly introduced  from  without.  This  increase  in 
temptation  to  wrongdoing  is  but  one  of  the  indications 
of  the  radical  change  in  environmental  conditions  inci- 
dent to  the  transition  from  country  to  city  life.  We 
are  only  beginning  to  appreciate  its  full  significance. 

The  mere  fact  of  concentration  of  population  means 
a  degree  of  interdependence  between  the  individuals  of 
the  community  unknown  to  country  life.  With  increas- 
ing density  of  population  the  points  of  contact  between 
individual  activity  and  social  welfare  become  more  nu- 
merous. The  facts  of  every-day  experience  offer  many 
illustrations.  In  the  country  districts  the  sanitary  con- 
dition of  the  home  is  a  matter  of  individual  concern  in 
which  the  community  at  large  has  but  an  indirect  and 
remote  interest,  but  in  the  city  the  situation  is  radically 
changed.  Every  unsanitary  dwelling  is  a  direct  menace 
to  the  welfare  and  safety  of  the  community;  neglect  to 
fix  the  standards  of  sanitation  means  reduced  vitality 


SOCIAL   CONSEQUENCES    OF    GROWTH     73 

and  diminished  industrial  efficiency.  The  heaviest  bur- 
dens of  such  neglect  fall  upon  those  classes  least  able 
to  bear  the  strain.  This  is  particularly  true  wherever 
the  working  classes  are  housed  in  tenements.  Escape 
from  the  influence  of  neighbors  becomes  impossible,  and 
as  we  descend  the  scale  of  income  the  degree  of  inter- 
dependence becomes  greater.  The  manner  of  perform- 
ing the  ordinary  routine  of  household  duties  directly 
affects  the  comfort  and  often  the  health  of  a  whole  dis- 
trict. Even  where  the  tenement-house  system  is  the 
exception,  as  in  Philadelphia,  there  is  no  escape  from 
the  ignorance  and  selfishness  of  neighbors. 

The  use  to  which  the  back  yards  of  our  city  dwell- 
ings are  usually  put  furnishes  an  excellent  illustration 
of  the  influence  of  the  city  environment  upon  individual 
conduct.  In  the  country,  the  management  of  the  farm 
is  determined  by  the  choice  of  the  individual  owner, 
and  with  the  exception  of  a  few  unimportant  restrictions 
the  community  does  not  attempt  to  limit  freedom  of 
choice.  To  permit  anything  like  the  same  liberty  of 
action  in  a  densely  crowded  community  would  involve 
the  most  serious  dangers.  In  a  city  like  Philadelphia, 
for  instance,  with  its  hundred  thousand  workingmen's 
dwellings,  we  find  the  back  yard  used  as  a  dumping 
ground  for  refuse  matter.  Adaptation  to  the  city  envi- 
ronment has  not  advanced  sufficiently  to  develop  a  feel- 
ing of  social  responsibility  or  to  show  the  necessity  of 
enforcing  higher  standards  of  individual  action. 


74   PROBLEMS  OF  CITY  GOVERNMENT 

As  the  more  progressive  elements  in  the  community 
begin  to  appreciate  the  type  of  conduct  required  for 
the  fullest  utilization  of  the  opportunities  of  city  life 
the  feeling  of  social  responsibility  begins  to  appear. 
This  stage  once  reached,  the  final  step  will  be  to  enforce 
the  new  standards  upon  the  less  progressive  elements 
through  legal  enactment.  At  the  present  time  only  a 
very  small  section  of  the  community  ever  stops  to  think 
of  the  reactive  influence  of  individual  conduct  upon 
social  welfare.  The  enforcement  of  new  standards  of 
conduct  seems  to  imply,  at  first  glance,  a  serious  en- 
croachment upon  the  domain  of  individual  liberty.  In 
a  country  such  as  ours,  in  which  the  fundamental  prin- 
ciples of  government  have  been  framed  with  a  view  to 
securing  personal  and  property  rights,  the  problem  of 
effecting  a  modification  of  political  standards  in  the 
direction  of  greater  governmental  regulation  is  pecul- 
iarly difficult. 

A  careful  analysis  of  the  situation  will  show  that 
adaptation  to  the  city  environment  implies  a  modifica- 
tion of  the  concept  of  liberty  rather  than  an  actual 
narrowing  of  the  field  of  free  choice.  We  have  be- 
come so  accustomed  to  identify  "  liberty  "  with  "  free- 
dom from  restraint  "  that  any  increase  of  regulative 
control  is  regarded  as  a  step  toward  governmental  tyr- 
anny. To  the  average  citizen,  liberty  is  an  absolute 
term — a  definite  and  unchangeable  series  of  individual 
choices.  While  the  tyranny  of  social  custom  is  not 


SOCIAL    CONSEQUENCES    OF    GROWTH     75 

looked  upon  as  a  real  restriction  of  personal  liberty, 
every  increase  of  legal  regulation  is  so  regarded.  Even 
in  the  philosophical  discussions  of  the  subject  we  rarely 
find  a  recognition  of  the  fact  that  the  range  of  choice 
in  a  progressive  society  is  constantly  increasing.  Dif- 
ferentiation of  wants,  and  diversification  of  opportu- 
nity for  their  satisfaction,  are  the  very  essence  of  social 
progress.  The  intellectual  and  industrial  stimulus  de- 
veloped by  concentration  of  population  finds  expression 
in  the  greater  variety  of  wants,  the  constant  diversi- 
fication of  industry,  and  an  increasing  variety  of  choices 
in  consumption.  Striking  illustrations  of  this  fact  may 
be  drawn  from  the  food  supply,  the  clothing,  the  occu- 
pations, the  amusements,  recreations,  and  intellectual 
opportunities  of  the  city.  In  all  of  these  the  possibili- 
ties of  choice  are  immeasurably  greater  than  in  the 
country  districts.  "While  this  wider  range  of  choice  is 
one  of  the  conditions  requisite  to  progress,  it  begets 
new  dangers,  both  to  the  individual  and  to  the  com- 
munity. 

The  community  has  a  very  definite  interest  in  the 
kind  of  choices  which  the  individual  may  make,  and  the 
dangers  of  a  wrong  choice  increase  with  the  rise  in  the 
rate  of  wages.  With  every  increase  in  income  the  range 
of  choice  is  widened.  So  long  as  the  selection  of  occu- 
pation, food,  or  amusement  which  the  individual  may 
make  does  not  injuriously  affect  broader  social  inter- 
ests, regulation  through  law  is  not  only  unnecessary,  but 


positively  oppressive.  To  make  the  right  choices,  how- 
ever, presupposes  a  degree  of  self-control  and  discrimi- 
nation which  is  to  be  found  in  only  a  small  fraction  of 
the  population.  The  bitter  lessons  of  English  experi- 
ence during  the  early  decades  of  the  last  century  have 
demonstrated  for  all  time  that  unregulated  development 
brings  with  it  the  most  serious  evils,  endangering  the 
health  and  safety  of  the  community.  The  food  supply 
of  the  population  must  be  carefully  inspected  in  order 
to  protect  the  housekeeper  against  the  allurement  of 
mere  cheapness,  which  usually  means  adulterated  or 
otherwise  unwholesome  food.  In  the  regulation  of  the 
liquor  traffic  the  community  endeavors  to  minimize  the 
temptations  to  drunkenness  and  crime.  The  building 
laws  and  tenement-house  regulations  are  designed  to 
protect  the  population  against  the  consequences  of  un- 
sanitary surroundings.  Trade  regulations  exclude  cer- 
tain occupations  from  the  field  of  choice,  and  in  the 
case  of  unwholesome  trades  determine  where  and  under 
what  conditions  they  shall  be  carried  on.  This  exten- 
sion of  governmental  control,  which  registers  with  con- 
siderable accuracy  the  gradual  adaptation  of  the  popu- 
lation to  the  city  environment,  has  not  been  effected 
without  a  struggle.  The  eighteenth-century  interpre- 
tation of  individual  liberty  had  to  give  way  before  the 
pressure  of  existing  evils.  A  century's  experience  has 
taught  us  that  the  process  of  adaptation  is  far  from 
being  complete.  On  all  sides  we  have  evidence  of  wide 


SOCIAL   CONSEQUENCES   OF    GROWTH      77 

discrepancies  between  individual  conduct  and  social  wel- 
fare, but  the  emphasis  on  individual  rights  has  obscured 
the  new  relation  of  the  individual  to  the  community. 

In  the  United  States  the  belief  in  absolute  individual 
rights  makes  it  possible  for  the  citizen  to  take  refuge 
behind  the  Constitution  in  the  attempt  to  enforce  his 
will  or  pleasure  against  the  best  interests  of  the  com- 
munity. It  is  this  attitude  toward  the  freedom  of  the 
individual  that  encumbers  our  sidewalks  with  all  sorts 
of  obstructions,  enables  the  soap  manufacturer  to  bur- 
den our  streets  with  blazing  advertisements,  and  makes 
it  possible  for  the  individual  to  ruin  the  architectural 
effect  of  an  entire  section  of  the  city.  The  city  envi- 
ronment demands  an  essentially  different  type  of  con- 
duct, and  consequently  a  different  type  of  morality  from 
that  of  the  rural  districts.  In  the  city  the  individual 
must  clearly  visualize  the  reactive  influence  of  his  acts 
upon  the  welfare  of  the  community.  Communal  wel- 
fare must  become  an  important  factor  in  the  motives 
that  determine  individual  action. 

As  civilization  advances  from  a  condition  of  rural 
isolation  to  the  close  association  of  city  life,  a  marked 
change  takes  place  in  the  degree  of  dependence  upon 
purely  physical  conditions.  The  mere  fact  of  increas- 
ing density  of  population  involves  the  gradual  devel- 
opment of  an  artificial  environment  to  replace  natural 
physical  conditions.  The  plotting,  grading,  and  paving 
of  streets,  the  construction  of  wharves,  the  public  water 


78   PROBLEMS  OF  CITY  GOVERNMENT 

supply,  and  drainage  system — in  short,  every  public 
work — supply  needs  which  natural  conditions  fail  to 
meet.  Every  increase  in  municipal  functions  marks 
another  step  in  the  development  of  this  artificial  envi- 
ronment. 

This  power  over  the  environment  carries  with  it  far- 
reaching  consequences,  for  it  places  upon  the  community 
a  large  share  of  the  responsibility  for  social  advance. 
For  the  greater  portion  of  the  population  the  question 
of  an  elevating  or  degrading  environment  is  decided  by 
the  community  in  its  organized  capacity.  That  we  have 
failed  to  recognize  this  fact  in  our  American  cities  has 
been  due  to  one  of  the  defects  of  our  strongest  virtue 
— the  intensity  of  home  life. 

The  development  of  the  home  and  of  the  instincts 
and  feelings  which  group  themselves  about  the  home  ideal 
has  been  and  still  is  the  leading  characteristic  of  our 
social  life.  It  is  the  phase  of  American  character  which 
impresses  itself  most  forcibly  upon  the  foreigner.  Our 
individualism,  intense  as  it  is,  stops  short  of  the  family 
group.  Devotion  to  the  family  and  to  family  interests 
occupies  so  high  a  place  in  public  opinion  that  it  can 
readily  be  used  to  cloak  fraud  and  dishonesty  in  busi- 
ness relations.  Business  reputation  will  stand  many 
shocks  if  well  padded  with  domestic  virtues.  Offenses 
against  family  integrity,  on  the  other  hand,  are  visited 
with  punishment  which  is  often  cruel  in  its  severity. 
No  one  will  deny  that  this  high  development  of  home 


SOCIAL   CONSEQUENCES   OF   GROWTH      79 

life  has  played  a  most  important  part  in  the  formation 
of  American  character,  and  that  it  has  been  one  of  the 
strongest  safeguards  against  the  excesses  which  usually 
accompany  rapid  material  progress.  But  in  spite  of 
their  great  social  value  in  other  directions,  our  home 
ideals  have  retarded  rather  than  promoted  civic  advance. 
This  does  not  mean  that  there  is  a  necessary  and  inher- 
ent antagonism  between  home  instincts  and  civic  activ- 
ity, but  rather  that  modern  social  development  has 
placed  a  premium  upon  the  domestic  virtues.  Family 
responsibilities  stimulate  those  industrial  qualities  which 
make  for  economic  progress,  whereas  civic  zeal  is  often 
a  real  hindrance  to  business  success. 

The  women  of  this  country  must  bear  part  of  the 
responsibility  for  the  failure  of  the  home  to  contribute 
toward  the  development  of  civic  action.  The  influence 
of  the  average  woman  in  the  United  States,  especially 
in  the  middle  classes,  has  been  distinctively  unfavorable 
to  the  participation  of  the  head  of  the  household  in  pub- 
lic affairs.  There  is  a  strong  feeling  in  the  vast  majority 
of  American  homes  that  time  given  to  public  affairs  is 
time  lost.  With  relatively  few  exceptions  the  wife  has 
discouraged  the  participation  of  the  husband  in  public 
life,  because  of  the  fear  that  such  participation  would 
take  the  husband  away  from  home,  and  that  it  would 
encroach  upon  the  time  that  should  be  given  to  the  sup- 
port of  the  family.  Combined  with  this  there  has  been 
a  deeply  rooted  feeling  of  repugnance  against  the  par- 


80   PROBLEMS  OF  CITY  GOVERNMENT 

ticipation  of  the  husband  in  political  struggles.  No  in- 
fluence has  been  more  potent  in  keeping  voters  not 
only  from  the  polls,  but  also  from  more  important  ac- 
tivity in  the  local  political  associations  and  committees. 
The  root  of  the  difficulty  is  to  be  found  in  the  defective 
training  of  the  women  of  the  country.  Their  educa- 
tion in  the  home  and  in  the  school  has  been  of  a  char- 
acter which  has  fostered  the  strongest  individualistic 
tendencies. 

There  is  in  fact  no  inherent  antagonism  between 
domestic  virtues  and  civic  usefulness,  but  the  mistaken 
interpretation  which  the  women  of  the  country  have 
placed  upon  the  domestic  virtues  has  served  to  create  a 
fictitious  antagonism  which  has  done  and  is  still  doing 
incalculable  harm  to  the  civic  advance  of  our  American 
communities.  Thus,  the  powerful  economic  forces  that 
contributed  toward  the  isolation  of  the  home  have 
diverted  the  attention  of  the  community  from  the  enor- 
mous power  which  the  city  in  its  organized  capacity 
does  and  must  always  wield  for  good  or  evil.  It  is  a 
mistake  to  suppose  that  a  passive  attitude  means  a 
neutral  one,  for  the  mere  fact  of  concentration  of  popu- 
lation necessarily  involves  a  change  of  environment. 
The  only  question  at  issue  is  whether  this  environment 
shall  be  consciously  modified  by  the  community  with  a 
view  to  developing  new  moral  qualities  and  stimulating 
higher  ideals,  or  whether  unregulated  development  shall 
be  the  course  adopted.  The  answer  to  this  question  is 


SOCIAL   CONSEQUENCES   OF   GROWTH     81 

not  a  difficult  one  when  we  stop  to  consider  the  nature 
of  the  interests  at  stake — the  physical  vigor  and  moral 
tone  of  the  community. 

The  exercise  of  the  community's  power  over  indi- 
vidual conduct  is  largely  dependent  upon  one  of  the 
most  important  of  the  laws  of  social  choice,  that  of 
"  minimum  cost."  In  the  selection  of  food,  of  recrea- 
tions and  amusements,  the  individual  seeks  a  maximum 
of  enjoyment  for  a  minimum  outlay.  Changes  in  habits 
and  mode  of  life  in  order  to  be  permanent  must  rest 
upon  this  basis.  When,  therefore,  the  transition  from 
country  to  city  life  makes  necessary  radical  changes 
in  the  standards  of  conduct,  the  modification  of  envi- 
ronmental conditions  may  be  made  to  contribute  toward 
this  end.  The  conditions  of  life  in  our  great  cities  offer 
striking  instances  of  the  power  which  the  community 
may  exercise.  The  improvements  of  the  last  few  years 
in  street  construction  have  already  changed  the  habits 
of  large  sections  of  the  population.  Rapid  and  easy 
communication  between  different  parts  of  the  city  has 
been  made  possible;  the  electric  railway  has  become  an 
instrument  for  recreation  as  well  as  a  means  of  trans- 
portation. The  local  environment  of  the  individual  has 
been  enlarged,  and  with  this  enlargement  of  environ- 
ment there  will  come  a  broadening  of  civic  interest. 

Again,  the  influence  of  the  saloon  is  largely  to  be 
explained  by  the  fact  that  in  most  American  cities  it 
is  the  only  center  of  social  intercourse  and  amusement 


readily  accessible  to  the  laboring  classes.  Little  or  no 
attempt  has  been  made  to  develop  institutions  which 
will  serve  all  the  purposes  of  the  saloon  without  its 
degrading  influences.  The  success  of  the  few  discon- 
nected efforts  of  private  associations  to  offer  counter 
attractions  is  but  an  indication  of  the  possibilities  of  the 
wider  and  more  efficient  action  of  the  community  in  its 
organized  capacity.  No  one  who  has  studied  the  influ- 
ence of  institutions,  such  as  Toynbee  Hall  and  the  Peo- 
ple's Palace,  can  have  failed  to  be  impressed  with  their 
influence  upon  the  habits  and  morality  of  the  popu- 
lation. 

At  the  present  time  the  attractiveness  of  the  saloon 
is  greatly  enhanced  because  of  the  uninviting  and  oft- 
times  positively  repulsive  appearance  of  the  streets.  We 
are  only  beginning  to  appreciate  the  fact  that  permanent 
improvements  in  city  life  are  dependent  upon  institu- 
tional changes,  upon  better  opportunities  for  recreation 
and  enjoyment  rather  than  upon  argumentation  and 
agitation.  The  distinction  between  good  and  bad  citi- 
zenship runs  parallel  with  the  line  of  division  between 
the  wholesome  and  injurious  use  of  leisure.  Unless  the 
opportunities  for  the  use  of  such  leisure  are  abundant, 
healthful,  elevating,  and  readily  accessible,  the  popula- 
tion will  hold  to  its  inherited  tastes  and  instincts.  In- 
stead of  many  and  varied  pleasures  there  will  be  a  few 
violent  and  exhausting  indulgences,  such  as  drink  and 
debauch,  which  eventually  sap  the  vitality  of  the  popu- 


SOCIAL   CONSEQUENCES    OF   GROWTH     83 

lation.  Private  associations  may  be  able  to  reach  small 
groups,  but  to  exert  a  lasting  influence  the  action  of  the 
community  as  a  whole  is  required. 

The  condition  of  the  water  fronts  of  America  as 
compared  with  those  of  European  cities  furnishes  one 
of  the  most  striking  illustrations  of  this  fact.  With 
rare  exceptions  we  have  permitted  our  water  fronts  to 
be  utilized  as  best  suited  individual  convenience.  The 
result  has  been  not  only  to  destroy  any  natural  beauty 
which  they  may  have  had,  but  to  make  these  districts 
less  attractive  than  any  other  portions  of  the  city.  It 
is  only  necessary  to  call  to  mind  such  superb  harbors  as 
New  York,  Boston,  and  Philadelphia,  which,  as  regards 
natural  beauty,  rival,  if  not  outrank,  the  cities  of  the 
old  world.  Compare,  for  instance,  the  waterfront  of 
Paris  with  that  of  Chicago,  or  Philadelphia's  treatment 
of  the  Schuylkill  with  Berlin's  splendid  avenues  along 
the  Spree.  We  have  proceeded  upon  the  assumption 
that  commercial  convenience  is  incompatible  with  clean- 
liness and  artistic  beauty,  and  as  we  were  determined 
to  obtain  the  former,  the  latter  has  been  sacrificed. 

The  failure  to  make  the  most  of  environmental  pos- 
sibilities involves  much  more  than  the  loss  of  sesthetic 
training.  It  affects  the  moral  tone  and  industrial  effi- 
ciency of  the  community,  and  greatly  reduces  its  possi- 
ble enjoyments.  Instead  of  making  the  water-front  dis- 
tricts the  most  attractive  promenades  and  recreation 
places,  they  have  become  the  haunts  of  the  very  worst 


84       PROBLEMS    OF   CITY   GOVERNMENT 

elements.  As  generation  after  generation  is  brought  up 
under  the  same  unfavorable  surroundings,  the  moral 
fiber,  the  vitality,  and  the  industrial  qualities  of  the 
population  of  these  districts  tend  to  decline.  Thus  are 
formed  the  breeding  spots  of  disease,  vice,  and  crime, 
which  are  the  great  obstacles  to  social  progress. 

It  is  instructive  to  note  the  contrast  between  two 
such  great  ports  as  Havre  and  New  York.  The  French 
have  succeeded  in  combining  the  two  principles  of  com- 
mercial utility  and  artistic  beauty.  Instead  of  permit- 
ting every  individual  to  assert  what  he  believes  to  be 
his  economic  interest  —  which  in  such  cases  usually 
means  cheap  and  unsightly  structures — the  community 
undertakes  the  management  of  its  riparian  rights  and 
requires  that  warehouses  and  other  buildings  conform 
to  one  general  plan.  The  result  has  been  that  in  Havre, 
as  in  most  of  the  cities  of  France,  the  quays  are  not 
only  fully  equipped  for  all  commercial  purposes,  but 
are  made  popular  recreation  centers.  In  most  cases  they 
serve  all  the  purposes  of  great  public  parks,  brilliantly 
illuminated  and  readily  accessible — a  constant  source  of 
civic  pride  and  a  powerful  stimulus  to  civic  patriotism. 

The  history  of  Paris  furnishes  abundant  evidence  of 
the  influence  of  the  city  environment  upon  the  character 
of  the  population.  The  artistic  reconstruction  of  large 
sections  of  the  city  during  the  Second  Empire  has  been 
one  of  the  forces  contributing  to  develop  that  keen 
appreciation  of  the  beautiful  which  distinguishes  the 


SOCIAL   CONSEQUENCES   OF    GROWTH     85 

population  of  Paris  from  that  of  the  other  large  cities 
of  the  civilized  world.  It  has,  furthermore,  aroused  that 
devotion  to  the  city  which  constitutes  the  most  inspir- 
ing element  in  the  life  of  the  French  capital.  Whatever 
may  be  the  shortcomings  in  the  political  life  of  the 
French  nation,  there  is  a  sensitiveness  and  alertness  of 
public  opinion  to  everything  that  affects  the  well-being 
of  the  city  which  arouse  the  admiration  of  every  ob- 
server. The  environment,  as  formed  by  the  community 
in  its  organized  capacity — the  splendid  avenues  and 
boulevards,  the  dignified  and  imposing  public  buildings, 
the  judicious  distribution  of  parks,  etc. — has  contributed 
largely  to  this  end. 

The  activity  of  the  English  and  Scotch  cities  under 
the  "  Housing  of  the  Working  Classes  Acts  "  furnishes 
numerous  striking  instances  of  the  influence  of  objective 
environment  upon  civic  effort.  In  Glasgow,  Birming- 
ham, and  London,  great  districts  have  been  remodeled 
and  rebuilt  by  the  municipality,  thus  creating  new  sur- 
roundings for  large  classes  of  the  population ;  surround- 
ings which  have  reacted  with  great  force  on  the  every- 
day life  of  the  people  and  on  the  civic  ideals  of  the 
community. 

Take,  for  instance,  the  Bethnal  Green  Improvement 
undertaken  some  years  ago  by  the  London  County  Coun- 
cil. In  this  district  of  the  East  End,  an  area  of  some 
fifteen  acres  of  closely  built-up  slum  property  was  ex- 
propriated, the  buildings  demolished,  and  a  generous 


plan  of  reconstruction  executed.  Streets  sixty  feet  wide 
arranged  upon  the  radial  plan,  model  tenement  houses 
complete  in  every  detail,  a  common  laundry,  reading 
rooms,  and  other  social  institutions  were  provided.  In 
short,  the  possibility  of  a  new. and  higher  mode  of  life 
was  offered  to  the  population.  The  environment  called 
for  higher  standards  of  living  to  which  the  population 
readily  responded.  The  laying  out  of  parks  and  play- 
grounds exerts  a  similar  influence.  Instead  of  the  gut- 
ter or  alley,  with  the  kind  of  amusements  which  they 
permit,  a  new  and  wider  freedom  is  given  to  the  child, 
and  for  the  adult  the  saloon  need  no  longer  furnish  the 
only  cheerful  recreation  center. 

In  the  administration  of  city  services,  especially  the 
municipal  industrial  enterprises,  similar  ends  must  be 
kept  in  view.  In  our  American  cities  the  gas  and  street- 
railway  services  have  never  been  viewed  in  the  light  of 
their  possible  social  functions.  Private  lighting,  while 
in  some  instances  under  direct  municipal  management, 
has  been  controlled  by  purely  financial  considerations, 
while  public  transportation  has  been  uniformly  managed 
by  private  corporations.  Here,  again,  the  recent  experi- 
ence of  English  cities  is  extremely  significant.  The 

• 

street-railway  systems  of  Glasgow  and  Sheffield,  which 
are  under  direct  municipal  management,  are  being  used 
as  a  means  of  effecting  a  better  distribution  of  popula- 
tion. The  rates  of  fare  are  so  adjusted  as  to  offer  direct 
inducement  to  the  laboring  classes  to  move  into  outlying 


SOCIAL   CONSEQUENCES    OF    GROWTH     87 

districts  instead  of  congregating  in  the  central  and 
already  overcrowded  portions.  The  one-  and  two-cent 
fares  during  the  early  morning  and  evening  hours  have 
been  the  means  of  bringing  large  numbers  into  a  new 
environment.  Recently,  Glasgow  has  decided  to  go  one 
step  farther  in  offering  model  tenements  in  the  subur- 
ban districts.  This  may  seem  a  dangerous  extension  of 
function,  and  yet  it  is  the  logical  outcome  of  a  recog- 
nition of  the  true  relation  of  the  community  to  its  en- 
vironment. In  the  administration  of  the  gas  service, 
similar  ends  have  been  kept  in  view.  In  order  to  extend 
the  use  of  gas  in  the  homes  of  the  working  classes  the 
price  was  gradually  reduced,  until  at  the  present  time: 
Glasgow  offers  gas  at  50  cents  per  1,000  cubic  feet, 
Manchester  at  54  £  cents,  Leeds  at  54  cents,  and  Birming- 
ham at  44  to  60  cents,  according  to  the  amount  con- 
sumed. As  an  additional  inducement  penny-in-the-slot 
meters  have  been  introduced  in  most  of  the  cities.  Leeds 
has  1,300  of  these  meters  in  operation,  Birmingham 
2,000,  and  Manchester  11,500.  A  similar  policy  is  now 
being  adopted  in  the  electric-light  service. 

From  this  analysis  of  the  relation  of  the  individual 
to  the  environment,  it  is  evident  that  the  morality  and 
civic  standards  of  all  classes  can  be  profoundly  influ- 
enced through  changes  in  the  conditions  of  life  which 
are  within  easy  reach  of  the  community.  That  the  ad- 
vance in  this  direction  has  not  been  more  rapid  in  the 
United  States  has  been  due  to  three  influences  which 


88   PROBLEMS  OF  CITY  GOVERNMENT 

have  weighed  heavily  on  civic  progress  —  inheritance, 
inertia,  and  ignorance.  The  first  of  these  —  inherited 
ideas  and  standards  of  conduct — is  by  far  the  most 
important,  as  it  is  at  the  root  of  much  of  the  inertia  and 
ignorance  of  which  we  hear  constant  complaint.  It  is 
comparatively  easy  to  show  the  points  of  maladjustment 
between  the  environment  and  the  habits  and  customs 
of  the  population,  but  to  determine  the  nature  of  the 
forces  which  make  for  adjustment  is  far  more  difficult. 

In  the  many  and  varied  agitations  for  political  re- 
form, so  characteristic  of  the  last  two  decades,  one  can 
readily  discern  a  common  principle  which  seems  to 
actuate  them  all — an  unbounded  faith  in  the  efficacy 
of  an  appeal  to  individual  reason  and  utilitarian  cal- 
culation. It  is  taken  for  granted  that  so  soon  as  the 
population  begins  to  appreciate  the  fact  that  this  or 
that  form  of  administrative  organization  means  greater 
economy  or  efficiency,  reform  is  at  hand.  The  agita- 
tion for  clean  streets,  pure  water,  sanitary  drainage, 
and  so  forth  is,  based  upon  the  same  class  of  arguments. 
City  government  is  likened  to  a  great  business  corpora- 
tion, the  same  instincts  and  motives  determining  success 
in  both.  It  is  assumed  that  the  desire  for  individual 
gain,  which  is  the  determining  force  in  private  business 
relations,  is  equally  powerful  in  public  life. 

The  failure  of  these  appeals  to  bring  about  the  de- 
sired results  has  been  the  pons  asinorum  of  reformers. 
Discouraged  by  the  meager  success  of  their  efforts,  they 


SOCIAL   CONSEQUENCES   OF    GROWTH     89 

have  attributed  the  lack  of  responsiveness  to  the  low 
moral  standards  of  the  city  population,  to  the  evils  of 
universal  suffrage,  to  the  massing  of  foreigners  in  our 
cities,  and  to  a  number  of  other  equally  irrelevant  causes. 
They  have  failed  to  grasp  the  fact  that  the  effectiveness 
of  individual  activity  in  public  affairs  is  dependent 
upon  concerted  action.  Until  the  time  is  ripe  for  such 
cooperation,  individual  effort  fails  to  exert  any  real 
influence. 

Again,  the  returns  from  civic  effort  are  usually  more 
or  less  remote  and  always  uncertain.  These  two  causes 
alone  explain  why  the  response  to  such  utilitarian  ap- 
peals is  so  feeble.  On  the  other  hand,  the  advantages 
to  be  derived  from  unswerving  devotion  to  private 
affairs  are  readily  calculable  and  usually  immediate. 
Under  ordinary  circumstances  the  citizen  will  not  hesi- 
tate in  his  choice  between  the  public  interest  and  private 
advantage  if  a  "  dollar-and-eents  "  calculation  is  the 
only  factor  determining  his  conduct.  The  possibility 
of  a  general  response  under  any  such  conditions  presup- 
poses an  ability  to  appreciate  future  results  and  a  readi- 
ness to  cooperate  for  purposes  other  than  immediate  per- 
sonal gain.  An  analysis  of  the  motives  to  groupal  action 
in  politics  discloses  the  fact  that  utilitarian  calculation 
is  one  of  the  subordinate  factors  in  the  determination 
of  civic  action.  To  make  the  individual  labor  and  strug- 
gle for  the  welfare  of  a  larger  social  unit  requires  the 
influence  of  forces  sufficiently  powerful  to  emancipate 


him  from  narrow,  selfish  interests.  These  forces  are  to 
be  found  in  the  civic  ideals  of  a  community- — that  ' '  com- 
bination of  feeling  and  belief  which  we  call  loyalty." 

Although  the  development  of  the  modern  city  has 
not  as  yet  reached  a  point  to  make  possible  the  deter- 
mination of  the  ultimate  content  of  the  distinctive  city 
ideals,  we  are  in  a  position  to  analyze  the  nature  of  the 
forces  contributing  toward  their  formation.  In  the 
home,  the  church,  and  the  club — to  mention  but  three 
of  an  ever-increasing  number  of  institutions — we  have 
instances  of  social  groupings  which  readily  command 
the  best  energies  of  the  individual  without  the  expecta- 
tion of  a  quid  pro  quo. 

Again,  if  we  stop  to  analyze  the  home,  it  is  evident 
that  the  group  of  pleasures  which  we  associate  with  it 
may  be  enjoyed  by  the  individual  in  other  relations.  It 
is  the  grouping  and  blending  of  these  pleasures  in  the 
family  relation  which  give  to  the  home  its  power  over 
the  individual,  calling  forth  unlimited  sacrifice  and 
devotion.  But  family  life  tends  to  isolate  the  individual 
from  the  community;  the  family  instincts  and  pleasures 
are  essentially  individualistic.  Civic  instincts — in  the 
broadest  sense  of  the  term — are  not  aroused  until  the 
inexclusive  pleasures  of  a  larger  social  grouping  begin 
to  play  an  important  part  in  the  life  of  the  individual. 
Whatever  the  exact  nature  of  this  larger  unit  may  be, 
it  will  require  of  the  individual  a  readjustment  of  his 
activities.  Historically,  the  larger  social  unit  was  first 


SOCIAL   CONSEQUENCES    OF    GROWTH     91 

the  family,  based  on  kinship,  then  the  political  unit, 
formed  to  meet  the  necessities  of  defense  and  aggression. 
Contemporaneous  with  the  political  and  often  identical 
with  it  was  the  religious  grouping. 

In  all  of  these  relations  the  individual  was  taken 
beyond  the  limits  of  the  family  in  the  modern  sense  of 
the  term.  But  political  organization  once  effected,  new 
groupings  within  the  community  are  soon  formed  with 
a  view  to  satisfying  wants  which  cannot  be  satisfied  in 
isolation.  The  development  of  the  social  instincts  and 
the  increase  in  social  ties  are  the  prerequisites  to  civic 
advance.  So  long  as  the  individual  remains  content 
with  the  pleasures  and  satisfactions  of  family  life,  he  is 
unwilling  to  sacrifice  time  and  energy  in  the  interests 
of  a  larger  group.  With  the  growth  of  the  city,  how- 
ever, new  social  possibilities  and  new  social  wants  make 
themselves  felt  —  wants  which  can  be  satisfied  only 
through  the  cooperation  of  large  groups.  The  possibility 
of  satisfying  these  social  cravings  constitutes  the  essen- 
tial distinction  between  city  and  country  life.  All  the 
primary  physical  wants,  such  as  pure  air  and  whole- 
some food,  can  be  better  satisfied  in  the  country,  for 
there  each  householder  has  full  control  over  both. 

So  soon  as  we  get  beyond  these  primary  physical 
wants,  however,  and  enter  the  field  of  social  desires,  the 
limitations  of  the  country  are  immediately  manifest. 
Social  pleasures  in  the  rural  districts  are  restricted  to 
the  meetinghouse,  the  tavern,  and  an  occasional  circus. 


92   PROBLEMS  OF  CITY  GOVERNMENT 

Social  relations  such  as  these  can  never  develop  the 
broader  civic  instincts.  The  possibility  of  new  pleasures, 
which  require  for  their  enjoyment  the  presence  of  large 
numbers  of  persons,  forms  one  of  the  chief  attractions  of 
city  life.  The  social  club,  the  theater,  the  various  lit- 
erary, scientific,  and  musical  societies  cannot  become  an 
integral  part  of  the  life  and  activity  of  the  individual 
until  he  has  come  under  the  influence  of  city  conditions. 
With  each  new  tie  his  readiness  to  labor  in  the  interest 
of  a  group  larger  than  the  family  becomes  increasingly 
evident.  What  at  first  seemed  a  loss  of  time  and  pos- 
sible loss  of  profit  becomes  an  instinctive  impulse  until 
it  reaches  its  full  fruition  in  a  spirit  of  devotion  to  the 
interests  of  the  community  as  a  whole. 

It  will  be  seen,  therefore,  that  the  growth  of  the 
civic  instinct  is  but  part  of  a  larger  movement  involv- 
ing all  the  distinctively  social  relations  of  the  individual. 
In  social  organizations,  such  as  the  church,  the  club,  and 
the  university,  those  standards  of  efficiency  are  first 
developed  which  are  afterwards  extended  to  every  de- 
partment of  the  city's  activity.  The  splendid  results 
of  concerted  action  in  these  fields  are  constant  object 
lessons  in  social  cooperation.  The  influence  of  the  uni- 
versity furnishes  a  striking  illustration  of  this  principle. 
In  many  of  our  larger  cities  the  university  has  made  a 
model  city  of  the  district  over  which  it  has  jurisdiction. 
The  splendid  walks,  the  artistic  arrangement  of  build- 
ings, the  spacious  athletic  grounds,  all  contribute  to  the 


SOCIAL   CONSEQUENCES   OF   GROWTH     93 

general  effect.  The  dormitory  system,  with  its  highly 
developed  social  life  and  spirit  of  cooperation,  modifies 
the  habits  and  standards  of  conduct  of  everyone  coming 
under  its  influence,  and  is  not  without  its  lessons  to  the 
community.  Finally,  the  elimination  of  all  debasing 
influences  completes  the  group  of  factors  which  give  to 
the  university  sections  of  American  cities  their  distinc- 
tive character. 

Along  somewhat  different  lines  the  church  and  the 
club  contribute  toward  the  development  of  civic  in- 
stincts. They  both  foster  the  feeling  of  loyalty,  and 
impress  upon  the  individual  the  possibilities  of  coopera- 
tive action.  The  coordination  of  these  various  social 
institutions  with  the  city  concept  is  the  first  step  in  the 
development  of  distinctive  city  ideals.  As  yet  they  are 
isolated  groupal  relations  which  have  not  been  correlated 
with  the  city  environment.  The  incentives  to  unselfish 
devotion  which  they  foster  are  distinct  contributions  to 
the  development  of  a  broader  civic  spirit.  As  the  object 
lessons  of  environmental  changes  produced  by  these  so- 
cial institutions  become  more  numerous  and  prominent, 
the  elements  will  be  furnished  from  which  the  individ- 
ual will  be  able  to  construct  a  picture  of  an  ideal  city 
environment.  The  life  of  the  individual  must  be  brought 
into  organic  and  vital  touch  with  the  life  of  the  com- 
munity. The  citizen  must  think  of  the  city  as  far  more 
than  a  protector  of  person  and  property.  In  his  mind, 
the  city  must  be  associated  with  a  large  group  of  services 


94   PROBLEMS  OF  CITY  GOVERNMENT 

upon   the   efficiency   of  which  the  maintenance   of   his 
standard  of  life  depends. 

All  this  involves  a  wide  extension  of  municipal  func- 
tions :  the  creation  of  a  new  city  environment.  The  city 
dweller  must  associate  the  city  in  its  organized  capacity 
with  those  pleasures  and  recreations  which  he  now  can 
secure  only  through  the  club  or  some  other  form  of  pri- 
vate organization.  The  extension  of  municipal  func- 
tions which  this  involves,  while  it  may  constitute  a  dan- 
ger, is  one  of  the  dangers  incident  to  progress.  The  city 
<if  the  future  will  be  associated  with  all  the  social  pleas- 
ures, now  isolated  and  exclusive.  Instead  of  expecting 
a  mechanism  of  government  to  maintain  a  high  standard 
of  public  service,  these  standards  will  be  furnished  by 
the  public  opinion  of  the  community.  Inefficient  gov- 
ernment will  mean  the  curtailment  of  a  great  mass  of 
pleasures  which  are  at  present  offered  only  by  the  ex- 
clusive social  and  athletic  clubs.  The  city  democracy 
toward  which  we  are  approaching  will  be  a  democracy 
of  pleasures  and  enjoyments  rather  than  a  democracy  of 
the  suffrage. 

REFERENCES 

HOBSON,  J.  A.     "The  Evolution  of  Modern  Capitalism,"  Chap. 

XIII.    London:  Scott,  1894. 
HOWE,  F.  C.     "  The  City :  the  Hope  of  Democracy. "    New  York : 

Scribner's,  1905. 
LAGNEAU.     "Essai    de    Statistique    Anthropologique    sur    la 

Population  Parisienne." 


SOCIAL    CONSEQUENCES    OF    GROWTH      95 

PKARSON,  C.  H.     "National  Life  and  Character,"  Chap.  III. 

London:  Macmillan,  1893. 
ROBINSON,  C.  M.     "The  Improvement  of  Towns  and  Cities." 

New  York:  Putnam's,  1901. 
WEBER,  A.  F.     "Growth  of  Cities  in  the  Nineteenth  Century." 

New  York:  Macmillan,  1899. 
ZUEBLIN,    C.     "American    Municipal    Progress."    Macmillan; 

1902. 


CHAPTER   V 

THE   POLITICAL    CONSEQUENCES   OP   CITY   GROWTH 

UNTIL  recently  the  attention  of  students  of  munici- 
pal affairs  has  been  directed  chiefly  to  the  administra- 
tive aspect  of  the  municipal  problem.  But  this  aspect 
is  superficial ;  underlying  it  are  the  deeper  forces  of 
city  life — the  real  influences,  political  and  social,  which 
determine  municipal  progress. 

It  is  possible  to  examine  the  political  influence  of 
cities  from  several  different  points  of  view.  We  may 
inquire  into  the  effects  of  city  life  upon  the  political 
thought  and  action  of  the  population;  or  we  may  trace 
the  influence  of  cities  upon  the  political  life  of  the 
nation.  These  two  questions  may  best  be  examined  sepa- 
rately, as  they  deal  with  essentially  different  problems, 
the  one  requiring  a  psychological  inquiry,  the  other  an 
examination  of  political  relations. 

As  regards  the  first  question,  it  is  evident  that  we 
have  to  deal  with  the  influence  of  the  environment  upon 
the  feelings,  instincts,  and  desires  of  the  individual  and 
of  the  group.  An  analysis  of  the  conditions  of  city 
life  gives  evidence  of  certain  definite  influences  which 
will  ultimately  develop  a  type  of  thought  and  action 

96 


POLITICAL   CONSEQUENCES   OF   GROWTH     97 

clearly  distinguishable  from  that  of  the  rural  districts. 
That  the  process  of  differentiation  is  not  further  ad- 
vanced is  due  mainly  to  the  fact  that  the  traditions 
and  habits  of  thought  of  modern  nations  have  been  de- 
veloped under  the  conditions  of  rural  life.  It  is  neces- 
sary, therefore,  to  counteract  this  social  inheritance 
before  the  process  of  adaptation  to  the  conditions  of 
city  life  can  proceed.  Many,  if  not  most,  of  the  defects 
of  modern  city  life  are  directly  traceable  to  the  lack 
of  harmony  between  the  instincts  and  standards  of  con- 
duct of  the  individual  and  the  conditions  of  the  environ- 
ment. A  comparison  between  the  inhabitants  of  the 
country  and  of  the  city  at  the  present  time,  while  it 
gives  evidence  of  certain  marked  differences,  shows 
merely  the  beginnings  of  a  far  more  radical  transforma- 
tion through  which  coming  generations  of  city  inhab- 
itants must  pass. 

It  is  evident  that  the  mere  fact  of  a  change  of  envi- 
ronment from  rural  to  urban  conditions  is  certain  to 
work  profound  changes  in  political  ideas.  The  disin- 
tegrating effect  of  a  new  environment  upon  accepted 
traditions  and  standards  of  conduct  is  one  of  the  fun- 
damental laws  of  social  change.  The  transition  from 
rural  to  city  life  has  acted  as  a  solvent  of  this  kind.  So 
powerful  has  been  its  influence  in  this  direction  that 
many  thinkers  have  ascribed  to  city  life  a  purely  de- 
structive role,  undermining  all  accepted  ideas,  tradi- 
tions, and  beliefs.  While  such  a  generalization  is  both 


98   PROBLEMS  OF  CITY  GOVERNMENT 

hasty  and  premature,  it  is  explained  readily  by  the 
fact  that  up  to  the  present  time  the  conspicuous  func- 
tion of  city  life  has  been  to  break  down  the  social  and 
political  standards  developed  under  rural  conditions. 
To  take  a  concrete  instance — during  the  early  period 
of  our  national  development  the  conditions  of  rural  life 
strengthened  that  negative  attitude  of  the  American 
people  toward  government  which  we  inherited  from  the 
struggle  with  the  British  crown.  We  have  been  accus- 
tomed to  regard  protection  of  property  rights  as  the 
real  and  usually  the  only  legitimate  field  of  govern- 
mental action.  Beyond  these  limits  state  activity  is 
called  state  ' '  interference  "  —  an  encroachment  upon 
the  liberty  of  the  individual. 

It  is  comparatively  easy  to  explain  this  attitude  when 
we  consider  the  character  of  the  early  settlers.  In  any 
new  country  the  pioneers  are,  by  a  process  of  natural 
selection,  the  most  energetic  and  independent.  They 
constitute  a  population  trained  to  depend  upon  them- 
selves and  with  little  sympathy  for  schemes  involving 
governmental  cooperation.  With  them,  intense  individ- 
ualism finds  unquestioned  acceptance. 

With  increasing  density  of  population  new  stand- 
ards of  governmental  action  are  forced  upon  the  com- 
munity. One  of  the  first  effects  is  to  make  apparent 
the  necessity  of  regulation  in  the  interest  of  the  pub- 
lic health  and  morals.  The  patent  facts  of  everyday 
life  demonstrate  the  evils  of  unrestrained  individual 


POLITICAL   CONSEQUENCES   OF   GROWTH     99 

liberty,  which  is  the  first  step  toward  a  broader  inter- 
pretation of  the  regulative  function  of  government. 
The  closer  interdependence  of  the  individuals  of  the 
community,  the  fact  that  the  activity  of  each  affects 
the  welfare  of  the  whole  at  so  many  points,  must  neces- 
sarily influence  the  standards  of  individual  liberty. 
This  is  the  first  and  the  most  important  point  of  contact 
between  the  political  ideas  and  the  social  activity  of  the 
community. 

The  political  principle  of  noninterference  with  in- 
dividual activity,  so  dear  to  the  Anglo-Saxon,  cannot 
receive  the  same  acceptance  in  the  city  as  in  the  coun- 
try. A  change  of  attitude  toward  governmental  activity 
is  forced  upon  the  community  by  the  conditions  of  city 
life.  The  evils  resulting  from  unregulated  development 
are  so  numerous  and  press  with  such  weight  upon  all 
classes  that  the  modification  of  political  ideas  takes  place 
with  relatively  little  friction.  It  first  finds  expression 
where  the  pressure  for  the  extension  of  governmental 
control  is  greatest,  viz.,  in  the  matter  of  sanitary  regu- 
lations. 

The  next  step  in  the  development  of  a  new  concept 
of  governmental  action  begins  with  the  undermining 
of  faith  in  the  effectiveness  of  free  competition  as  a 
guarantor  of  efficient  service  and  a  regulator  of  prog- 
ress. No  one  who  has  followed  the  trend  of  opinion  in 
the  large  cities  of  the  United  States  can  have  failed  to 
observe  the  gradual  awakening  to  the  limitations  of  free 


competition.  The  facts  of  corporate  combination  and 
consolidation,  particularly  in  such  quasi-public  services 
as  the  street  railway,  gas,  and  water  supply,  have  done 
more  to  bring  about  a  truer  appreciation  of  the  relation 
of  the  community  to  industrial  action  than  any  amount 
of  discussion.  American  communities  at  first  dealt  with 
every  one  of  these  services  on  the  basis  of  free  compe- 
tition. Under  this  plan,  short  periods  of  low  prices  and 
indifferent  service  scon  led  to  combination  or  consolida- 
tion, with  the  high  cost  incident  to  inflated  capitaliza- 
tion. Lessons  such  as  these  have  profoundly  influenced 
the  political  thought  of  our  urban  communities.  There 
is  no  longer  the  same  distrust  of  all  positive  govern- 
mental action  so  characteristic  of  the  early  decades  of 
the  last  century. 

A  further  step  in  the  development  of  political 
thought  directly  traceable  to  the  influence  of  city  life 
is  closely  connected  with  the  growing  appreciation  of 
the  nature  of  the  city  environment  and  of  the  reactive 
influence  of  such  environment  upon  the  population. 
The  conditions  of  city  life  are  capable  of  indefinite 
modification  through  the  action  of  individuals  or  through 
the  concerted  action  of  the  community.  The  history 
of  every  large  city  bears  testimony  to  the  possibilities 
of  radical  changes  in  environmental  conditions,  changes 
which  have  profoundly  affected  the  health,  morals,  and 
welfare  of  the  community. 

The  general  appreciation  of  the  tremendous  power 


POLITICAL   CONSEQUENCES   OF   GROWTH    101 

at  the  disposal  of  the  community  exerts  a  powerful  in- 
fluence upon  the  political  ideas  of  the  urban  popula- 
tion. The  rapid  extension  of  municipal  functions  dur- 
ing the  last  few  years  is  an  indication  of  a  marked 
change  of  attitude  toward  the  municipality.  This  does 
not  necessarily  mean  that  we  are  approaching  a  period 
of  municipal  socialism  in  the  ordinary  acceptation  of 
the  term.  Ultimately,  the  industrial  activity  of  the  mu- 
nicipality may  be  relatively  less  than  it  is  at  the  pres- 
ent time.  The  change  in  political  ideas  will  be  in  the 
direction  of  demanding  of  the  municipality  the  physical 
conditions  for  the  best  utilization  of  the  industrial  possi- 
bilities of  the  individual  and  for  the  gratification  of  his 
a?sthetic  tastes.  Perfect  sanitation,  a  good  water  supply, 
and  a  cheap  and  efficient  system  of  transportation  will 
be  regarded  as  rights  rather  than  as  mere  desiderata. 

While  these  changes  in  the  attitude  of  the  popu- 
lation toward  government  constitute  the  most  impor- 
tant of  the  consequences  directly  traceable  to  the  influ- 
ence of  city  life,  there  are  unmistakable  indications  of 
important  modifications  in  our  ideas  of  governmental 
structure  due  to  the  same  set  of  causes.  The  organiza- 
tion of  our  government  —  national  as  well  as  state  — 
has  been  determined  by  a  political  philosophy  inherited 
from  the  English  Whigs  of  the  eighteenth  century. 
The  central  thought  of  this  philosophy  is  the  belief 
in  a  governmental  mechanism  acting  through  "  checks 
and  balances  "  and  designed  to  prevent  the  abuse  of 


102     PROBLEMS    OF    CITY    GOVERNMENT 

power.  Concerted  action  among  the  various  organs 
of  government  was  what  the  English  middle  class  of 
the  eighteenth  century  feared  most.  It  was  felt  that 
the  individual  could  be  protected  from  the  tyranny  of 
government  only  by  allowing  one  organ  of  government 
to  counteract  the  action  of  another.  Division  of  power 
was  regarded  as  essential  to  the  preservation  of  indi- 
vidual liberty. 

To  these  political  ideas  and  standards  the  American 
colonists  fell  heir.  When  we  consider  the  characteristics 
of  the  first  generation  of  Americans  and  the  nature  of 
their  environment,  it  is  not  at  all  surprising  that  these 
principles  should  have  been  applied  with  a  logical  con- 
sistency even  surpassing  that  of  the  English  Whigs.  At 
the  time  the  states  began  to  construct  their  systems  of 
municipal  government  upon  this  basis,  English  political 
sentiment  was  undergoing  a  change  in  favor  of  concen- 
trated authority  and  concentrated  responsibility. 

In  the  period  immediately  following  the  adoption 
of  the  Constitution  the  faith  in  the  system  of  "  checks 
and  balances  "  seemed  to  gain  rather  than  to  lose  in 
strength,  due  in  large  part  to  the  grievances  against 
the  English  crown.  The  oppression  from  which  the 
colonists  had  suffered  was  ascribed  to  a  lack  of  proper 
adjustment  of  checks  upon  legislative  and  executive  ac- 
tion. It  is  not  surprising,  therefore,  to  find  this  theory 
determining  the  organization  of  our  state  and  national 
governments.  At  first  the  traditions  of  English  borough 


POLITICAL   CONSEQUENCES   OF   GROWTH    103 

government  prevented  its  application  to  the  cities.  The 
' '  close  corporate  ' '  organization,  modeled  after  the  Eng- 
lish borough  of  the  eighteenth  century,  soon  proved 
itself  not  only  inadequate  to  solve  the  problems  of  the 
rapidly  growing  towns,  but  was  also  out  of  harmony 
with  the  prevailing  democratic  ideas.  The  dissatisfaction 
which  resulted  furnished  the  opportunity  for  the  appli- 
cation to  city  government  of  the  political  principles 
which  had  already  been  applied  to  the  state  and  national 
systems,  and  which  were  regarded  as  necessary  to  the 
preservation  of  free  institutions. 

The  popular  faith  in  the  efficiency  of  this  form  of 
government  was  so  great  that  the  unsatisfactory  work- 
ing of  the  system  was  ascribed  to  imperfections  in  the 
mechanism  rather  than  to  any  inherent  defects  of  opera- 
tion. Instead  of  subjecting  the  system  to  a  thorough 
examination  to  ascertain  whether  it  was  adapted  to  the 
kind  of  problems  with  which  the  city  has  to  deal,  at- 
tempts were  made  to  patch  defects  by  means  of  minor 
changes  in  organization. 

It  is  only*  within  the  last  decade  that  we  begin  to 
find  an  awakening  distrust  of  this  system  of  divided 
power  and  divided  responsibility.  Industrial  develop- 
ment, particularly  the  management  of  private  corpora- 
tions, has  impressed  upon  the  country  the  advantages 
of  concentrated  power  when  accompanied  by  individual 
responsibility.  The  analogies  between  the  administra- 
tion of  municipal  departments  and  certain  forms  of  cor- 


104     PROBLEMS    OF    CITY    GOVERNMENT 

porate  enterprise  are  so  numerous  that  the  application 
to  the  former  of  experience  obtained  in  the  latter  is 
dictated  by  the  most  elementary  political  reasoning.  In 
fact,  municipal  government  is  often  spoken  of  as  a  kind 
of  business  undertaking.  The  traditions  of  concentrated 
power  developed  in  business  life  have  had  a  distinct 
influence  upon  that  portion  of  our  political  system  which 
it  most  closely  resembles,  viz.,  the  organization  of  city 
government.  The  decline  of  the  local  legislative  assem- 
bly which  has  accompanied  the  concentration  of  power 
in  the  mayor  marks  one  of  the  turning  points  in  the 
development  of  political  ideas.  We  have  begun  to  real- 
ize that  individual  liberty  is  no  longer  dependent  upon 
the  "  reciprocal  struggles  of  discordant  powers,"  and 
that  the  progressive  development  of  municipal  policy 
demands  the  cooperation  of  all  the  organs  of  govern- 
ment rather  than  their  mutual  distrust.  To  insure  effi- 
ciency in  administration,  it  is  necessary  to  give  to  indi- 
vidual officials  full  authority  to  carry  out  the  policy 
determined  upon  by  the  legislative  organ. 

The  change  in  popular  opinion  regarding  the  struc- 
ture of  city  government  is  beginning  to  show  its  in- 
fluence upon  our  state  and  national  life.  The  tendency 
to  curtail  the  powers  of  the  state  legislatures  has  be- 
come so  marked  that  they  have  already  been  reduced 
to  a  position  of  subordinate  importance.  The  governor's 
powers,  on  the  other  hand,  have  been  constantly  increas- 
ing. The  great  number  of  executive  commissions  sub- 


POLITICAL   CONSEQUENCES   OF   GROWTH    105 

ject  to  his  power  of  appointment  and  removal  has  given 
him  an  effective  control  over  the  administrative  policy 
of  the  state.  This  concentration  of  power  has  resulted 
in  a  concentration  of  responsibility  which  makes  the 
gubernatorial  election  the  popular  verdict  on  party 
policy. 

Changes  in  the  problems  and  structure  of  govern- 
ment do  not,  however,  exhaust  the  political  consequences 
of  city  growth.  Besides  the  direct  influence  of  environ- 
mental changes  upon  political  ideas,  there  is  an  impor- 
tant indirect  influence  traceable  to  the  conditions  of 
intellectual  life  in  densely  settled  communities.  The 
intellectual  stimulus  which  results  from  the  close  con- 
tact of  mind  with  mind  has  been  clearly  set  forth  by 
Bagehot,  Maine,  Pearson,  and  Giddings.  The  weight 
of  custom  and  tradition,  which  rests  as  a  pall  upon  all 
early  civilizations,  cannot  resist  the  spirit  of  analysis  and 
criticism  fostered  by  the  discussions  of  the  forum  and 
the  market  place.  While  the  limits  of  such  discussion  are 
comparatively  narrow,  the  possibility  of  free  criticism 
develops  that  healthful  variation  in  political  thought 
upon  which  progress  depends.  The  constant  interchange 
of  ideas  which  concentration  of  population,  particu- 
larly in  periods  of  undeveloped  transportation  facilities, 
makes  possible  is  the  entering  wedge  for  the  growth  of 
political  toleration.  The  discussions  within  the  "  sacred 
precincts  "  of  the  ancient  cities,  of  the  market  place  in 
the  mediaeval  towns,  and  the  constant  criticism  to  which 


106  PROBLEMS  OF  CITY  GOVERNMENT 

every  political  movement  is  subjected  in  our  modern  cit- 
ies, constitute  the  great  solvents  in  the  political  life  of 
modern  nations.  This  fact  has  led  many  writers  to 
the  conclusion  that  the  influence  of  cities  is  destructive 
rather  than  constructive. 

In  support  of  this  proposition,  it  is  argued  that  while 
the  great  revolutions  in  political  thought  have  pro- 
ceeded from  the  cities,  they  have  failed  to  furnish  the 
constructive  principles  of  new  institutions.  The  influ- 
ence of  Paris  upon  the  political  life  of  France  is  cited 
as  a  case  in  point.1  In  no  other  modern  country  has 
one  city  developed  such  power  over  the  political  life  of 
the  nation,  due  in  part  to  the  centralization  of  French 
administration,  but  mainly  to  the  fact  that  Paris,  as  the 
political  and  intellectual  capital  of  the  country,  attracts 
the  best  talent  in  every  field  of  activity.  The  provinces 
look  to  Paris  for  their  standards  in  political  as  well 
as  in  social  life.  The  history  of  the  country  during 
the  last  century  points  to  the  conclusion  that  "  while 
the  fundamental  principles  upon  which  French  institu- 
tions rest  have  been  upheld  by  the  conservatism  of 
the  provinces,  the  great  catastrophic  forces  have  been 
directed  from  Paris. ' '  It  seems  more  than  probable  that 
were  Paris  to  have  full  control  over  the  political  policy 
of  France,  political  instability  would  be  even  greater 
than  it  is  at  the  present  time. 

To  explain  this  influence  of  the  city  we  must  picture 

1  "The  Influence  of  Paris."     Spectator,  November  5,  1898. 


POLITICAL   CONSEQUENCES   OF    GROWTH    107 

to  ourselves  the  effects  of  a  change  of  environment  upon 
individual  thought  and  action.  The  inhabitant  of  a 
country  district  moving  into  the  city  finds  himself  con- 
fronted with  new  conditions  of  life  which  immediately 
react  upon  the  ideas  inherited  or  acquired  in  the  coun- 
try. Until  adaptation  to  the  new  conditions  has  been 
effected,  the  undermining  of  the  old  standards  of  thought 
and  action  is  apt  to  find  expression  in  a  form  of  political 
radicalism,  negative  rather  than  constructive.  Further- 
more, the  great  contrasts  in  social  conditions,  in  political 
power,  in  intellectual  capacity,  which  are  part  of  the 
everyday  experience  of  a  city  population,  tend  to  under- 
mine his  faith  in  equality  and  to  weaken  the  belief  in  the 
reality  of  democratic  ideals.  Social  discontent,  which 
is  so  closely  connected  with  the  awakening  desire  for 
economic  betterment,  tends  to  strengthen  the  reaction 
against  accepted  ideas  and  traditions. 

With  these  forces  at  work  it  is  not  surprising  to 
find  the  intellectual  impetus  to  revolutionary  movements 
coming  from  the  cities.  This  certainly  has  been  the  case 
in  France  during  the  present  century.  In  Germany  the 
cities  are  furnishing  an  ever-increasing  number  of  ad- 
herents to  the  anti-governmental  parties;  while  in  Eng- 
land and  the  United  States  the  cities  have  long  been 
centers  from  which  the  most  searching  criticism  of  ex- 
isting conditions  has  proceeded. 

This  rather  negative  role  which  has  been  assigned 
to  the  city  by  recent  writers  must  be  regarded  as  char- 


108     PROBLEMS    OF   CITY    GOVERNMENT 

acteristic  of  a  period  of  transition  from  a  country  to 
a  city  civilization.  The  stability  and  further  progress 
of  our  institutions  depend  upon  the  growth  of  habits  of 
thought  and  action  in  harmony  with  the  conditions  of 
city  life.  These  must  be  just  as  definite  and  positive  as 
those  which  country  life  developed.  When  we  have 
grasped  fully  the  demands  which  a  higher  type  of  city 
life  makes  upon  the  individual,  and  have  become  clearly 
conscious  of  the  form  of  government  adapted  to  meet 
city  problems,  the  more  positive  part  which  the  city  has 
to  play  in  the  development  of  political  thought  will  be 
accomplished. 

If  the  effects  of  city  life  upon  political  ideas  are  of 
the  nature  indicated,  it  is  evident  that  the  gradual  tran- 
sition from  rural  to  urban  conditions  is  fraught  with 
far-reaching  consequences.  With  the  gradual  increase 
in  urban  population  there  is  introduced  into  the  body 
politic  a  new  influence  which  acts  as  a  dissolvent  of 
political  standards,  and  which  may  react  unfavorably, 
at  least  for  a  time,  upon  national  life.  Openness  to  new 
ideas,  which  characterizes  the  city  population,  usually 
means  the  absence  of  profound  conviction  on  any  funda- 
mental question. 

The  great  political  parties  in  all  countries  have  long 
recognized  this  fact,  which  explains  their  desire  to  pre- 
vent the  cities  from  obtaining  a  controlling  influence 
in  political  life.  The  dominant  party  feels  that  the 
forces  which  it  has  most  to  fear  emanate  from  the  city, 


POLITICAL   CONSEQUENCES   OF   GROWTH    109 

and  this  accounts  for  measures  which  otherwise  would 
be  inexplicable.  Thus  it  would  seem  that  when  the 
movement  of  political  opinion  in  the  cities  is  favorable 
to  a  party,  it  would  do  everything  to  give  to  the  cities 
an  influence  at  least  proportionate  to  their  population, 
but  the  instinct  of  self-preservation  dictates  an  essen- 
tially different  course.  It  is  tolerably  certain  that  from 
the  constant  criticism  and  analysis  to  which  party  policy 
is  subjected  in  the  cities,  a  movement  unfavorable  to  the 
dominant  party  will  gradually  develop. 

We  have,  therefore,  the  curious  spectacle  of  the  dom- 
inant political  party  refusing  to  give  to  the  cities  their 
proportionate  share  of  representation,  in  spite  of  the  fact 
that  such  a  change  would  increase  party  power — for  a 
time  at  least.  The  distrust  of  the  stability  of  political 
opinion  in  the  cities  leads  both  parties  to  hold  them  to  a 
minimum  of  representation.  This  fact  explains,  in  part, 
the  readiness  to  insert  in  state  constitutions  provisions 
setting  definite  limits  to  urban  representation  in  the 
legislature.  It  is  a  significant  fact  that  this  prohibition 
is  directed  almost  exclusively  against  the  largest  cities, 
in  which  the  oscillations  of  political  opinion  are  most 
frequent.  Thus  the  Constitution  of  Pennsylvania  J  pro- 
vides that ' '  no  city  or  county  .shall  be  entitled  to  a  sepa- 
rate representation  exceeding  one  sixth  of  the  whole 
number  of  senators."  The  Constitution  of  New  York3 
provides  that  "  no  county  shall  have  more  than  one 

i  Art.  II,  Sec.  16.  »  Art.  II,  Sec.  4. 


110     PROBLEMS    OF    CITY    GOVERNMENT 


third  of  all  the  senators;  and  no  two  counties,  or  the 
territory  thereof,  as  now  recognized,  which  are  adjoin- 
ing counties,  or  which  are  separated  by  public  waters, 
shall  have  more  than  one  half  of  all  the  senators."  This 
latter  provision  is  directed  against  the  Greater  New 
York.  Such  provisions  are  not  peculiar  to  Pennsylvania 
and  New  York.  They  are  found  in  the  constitutions  of 
many  of  the  other  states.  The  following  table  will  show 
the  discrepancy  between  the  population  and  representa- 
tion of  the  larger  cities  as  compared  with  the  represen- 
tation of  the  total  population: 


1  flJ 

j,  . 

fc-    - 

_> 

i§ 

§2 

>.  o 

II 

PS  08 

a 

11 

jl 

*o 

o.  8 

Estimated 

Estimated 

-*j 

"5-2 

If 

**! 

1  i 

fs  a 

ClTT. 

Popula- 
tion of 

Popula- 
tion of 

«~3 

rf 

J5  ® 

gQQ 

J'a 

1,3 

v  o 

n>^4 
gW 

s  ^> 

City, 

State, 

C(S 

a.s 

K  2 

a.g 

~      U 

1908. 

1908. 

•3$ 

a  $ 

If 

•s  >• 

B  8 

£  ? 

o*** 

1| 

-3* 

ICQ 

jl 

11 

o 

^ 

OH 

"S-2 

(-1 

a-"3 

°'fl 

H 

S  > 

<§ 

1 

^S 

IS 

Per 

cent. 

New  York  .  . 

4,285,435 

8,476,427 

50.55 

20 

51 

26 

58 

150 

76 

Chicago  

2,483,641 

5,590,000 

44.43 

17 

51 

23 

51 

153 

68 

Philadelphia. 

1,491,161 

6,900,000 

21.61 

8 

50 

11 

41 

207 

45 

St.  Louis.  .  .  . 

750,000 

3,885,989 

19.3 

6 

34 

7 

16 

142 

28 

Boston  

607,340 

3,173,487 

19.13 

8 

40 

8 

50 

240 

46 

While  we  do  not  find  constitutional  limitations  pre- 
venting the  cities  of  European  countries  from  enjoying 
their  full  quota  of  representation,  the  same  influences 
have  produced  similar  results.  With  the  constant  shift- 
ing of  population,  resulting  in  the  growth  of  urban  cen- 


POLITICAL   CONSEQUENCES   OF   GROWTH    111 

ters  at  the  expense  of  the  country  districts,  it  is  evident 
that  the  more  rapidly  growing  sections  fail  to  obtain 
the  representation  to  which  their  population  entitles 
them,1  unless  a  constant  revision  of  electoral  districts 
be  made. 

In  Germany,  for  instance,  the  electoral  districts  have 
not  been  thoroughly  revised  since  1871,  when  the  unit 
of  representation  for  the  Reichstag  was  fixed  at  103,000 
inhabitants.  The  growth  of  population  since  that  time 
has  caused  the  unit  of  representation  to  rise  from 
103,000  to  131,000,  a  change  mainly  due  to  the  growth 
of  cities.  Thus  Berlin  was  given 'one  representative  for 
every  138,000  in  1871 ;  in  1897  the  unit  of  representation 
for  the  city  was  280,000,  whereas  it  has  now  advanced 
to  350,000.  From  these  figures  it  will  be  seen  that  the 
discrimination  against  Berlin  dates  from  the  foundation 
of  the  empire,  and  that  the  phenomenal  increase  in 
population  of  the  capital  city  has  intensified  the  dis- 
crepancy in  representation.  So  far  as  its  representation 
is  concerned,  Berlin  has  occupied  a  position  of  dimin- 
ishing importance  in  the  national  legislature. 

For  the  whole  of  Germany,  it  is  interesting  to  note 
that  at  the  time  of  the  founding  of  the  empire  the 
cities  were  given  proportionate  representation  in  the 
Reichstag.  In  1871  the  cities  of  over  100,000  inhabi- 

1  For  the  statistics  of  urban  representation  in  European  countries, 
I  am  indebted  to  the  work  of  Professor  Meuriot  on  "  Des  Agglomera- 
tions Urbaines  dans  1'Europe  Contemporaine." 


tants  contained  6.9  per  cent  of  the  total  population 
and  were  given  6.8  per  cent  of  the  total  number  of 
representatives.  By  1897,  however,  the  percentage  of 
urban  to  total  population  had  increased  to  13.9  per 
cent,  whereas  relative  representation  had  remained  un- 
changed. As  the  growth  of  urban  population  is  far 
more  rapid  in  the  northern  than  in  the  southern  sec- 
tions of  the  empire,  it  is  evident  that  this  discrimination 
against  cities  gives  to  the  south  a  disproportionate  share 
of  political  representation,  and  since  this  is  the  section 
of  marked  particularistic  or  ' '  states '  rights  ' '  sentiment, 
it  follows  that  the  decentralizing  political  forces  are 
given  undue  strength.1 

In  France  the  urban  centers  enjoy  representation  in 
the  national  legislature  nearly  proportionate  to  their 
population.  The  twelve  larger  cities,  which  include  11.9 
per  cent  of  the  total  population  of  France,  are  given 
11.3  per  cent  of  the  total  representation.  The  senatorial 
divisions,  however,  combine  urban  and  rural  districts, 
and  thus  prevent  the  urban  centers  from  having  a  dis- 
tinct representation. 

England  furnishes  another  instance  of  the  unwilling- 
ness of  political  parties  to  adjust  national  representation 
in  accordance  with  the  changes  in  the  distribution  of 
population.  During  the  first  decades  of  the  last  century 
the  agricultural  counties  of  the  south  of  England  domi- 
nated the  political  life  of  the  country.  The  small  bor- 

1  Meuriot,  op.  cit. 


POLITICAL   CONSEQUENCES   OF    GROWTH    113 

oughs  which  controlled  the  representation  in  the  House 
of  Commons  were  concentrated  in  the  district  south  of 
the  Trent.  Until  the  changes  brought  about  by  the 
Reform  Acts  of  1832  and  1834  the  region  north  of  the 
Trent  elected  but  131  out  of  a  total  of  449  members  of 
Parliament.  Even  at  this  time  the  south  was  given 
greater  political  influence  than  its  population  warranted. 
The  north  had  one  representative  for  every  135,000 ;  the 
south  one  for  every  128,000.  It  required  a  long  strug- 
gle, extending  over  the  greater  portion  of  the  century, 
to  assure  to  the  northern  counties  their  due  proportion 
in  the  national  representation.  The  Reform  Act  of 
1832  was  the  first  important  step  in  this  direction,  but 
even  after  the  passage  of  this  act  the  southern  counties 
continued  to  enjoy  a  favored  position  in  the  national 
legislature.  The  Reform  Acts  of  1867  and  1884  were 
both  important  measures  in  effecting  a  more  equitable 
distribution  of  representation.  The  representation  of 
the  counties  south  of  the  Trent,  which  had  been  fixed  at 
298  in  1834,  was  reduced  to  228.  The  northern  counties, 
on  the  other  hand,  increased  their  quota  from  136  to 
170;  while  London,  which  had  always  been  unfairly 
treated,  found  its  representation  increased  from  22  to  62. 
If  such,  then,  is  the  influence  of  city  growth  upon 
political  thought  and  action,  it  is  evident  that  with  the 
gradual  transition  from  rural  to  urban  conditions  pro- 
found changes  both  in  the  constitution  and  in  the  activ- 
ity of  government  are  inevitable.  Until  our  habits  of 


114     PROBLEMS    OF   CITY   GOVERNMENT 

thought  and  standards  of  conduct  have  become  adjusted 
to  city  conditions,  we  may  expect  to  find  an  element  of 
instability  in  our  political  life  directly  traceable  to  the 
undermining  of  accepted  traditions  and  ideas.  Every 
step  toward  such  adjustment  finds  ultimate  expression 
in  the  attitude  of  the  population  toward  government. 
We  have  entered  upon  a  period  of  development  in  which 
the  extension  of  municipal  powers  is  receiving  increasing 
emphasis.  The  evils  resulting  from  unregulated  compe- 
tition have  given  rise  to  a  strong  movement  in  favor  of 
strengthening  the  regulative  powers  of  the  city  govern- 
ment. A  new  equilibrium  between  governmental  activ- 
ity and  individual  freedom  is  being  established. 

REFERENCES 

GIDDINGS,  F.  H.     "Democracy  and  Empire."    New  York:  Mac- 

millan,  1900. 

"Influence  of  Paris."    Spectator,  Nov.  5,  1898. 
MEURIOT,  M.  P.     "  Des  Agglomerations  Urbaines  dans  1'Europe 

Contemporaine."    Paris:  Belin  Freres,  1898. 
WEBER,  A.  F.     "Growth  of  Cities  in  the  Nineteenth  Century." 

New  York:  Macmillan,  1899. 


CHAPTER   VI 

THE   POSITION   OP   THE   CITY   IN   THE   AMERICAN 
POLITICAL   SYSTEM 

THERE  is  probably  no  other  question  in  American 
administrative  law  that  has  attracted  so  much  attention 
and  presented  so  many  difficulties  as  the  relation  between 
the  municipality  and  the  state.  The  great  diversity  in 
the  relations  between  city  and  state,  and  the  uncertainty 
of  many  of  these  relations,  have  added  to  the  difficulty 
of  treatment  and  have  complicated  the  problem  of  for- 
mulating general  principles  applicable  to  all  parts  of 
the  country. 

Two  distinct  aspects  of  the  question  present  them- 
selves for  consideration :  the  legal  and  the  political.  In 
the  discussions  of  recent  years,  whether  in  judicial 
opinions  or  in  scientific  treatises,  emphasis  has  been  laid 
on  purely  legal  relations.  The  danger  of  this  method 
of  treatment  lies  in  the  fact  that  it  creates  the  impres- 
sion, if  not  the  presumption,  that  the  problem  involves 
nothing  more  than  an  adequate  formulation  of  legal 
relations,  and  that  therefore  no  distinction  need  be  made 
between  the  legal  and  political  aspects  of  the  question. 

In  the  struggle  to  obtain  for  the  municipality  a  more 
115 


116     PROBLEMS    OF   CITY    GOVERNMENT 

definite  place  in  the  political  system  of  the  state,  to 
assure  to  it  a  certain  field  of  autonomy,  and  to  prevent 
the  state  legislature  from  constantly  interfering  with 
local  affairs,  recourse  has  been  had  to  constitutional 
amendments.  The  belief  has  been  quite  general  that 
through  a  mere  change  in  statutory  provisions  it  will 
be  possible  so  to  shape  the  relation  between  state  and 
municipality  as  to  limit  each  to  its  proper  sphere  of 
action. 

In  order  to  understand  the  position  which  the  mu- 
nicipality occupies  in  our  political  system,  it  is  neces- 
sary to  take  a  rapid  glance  at  certain  principles  of  the 
private  law,  which  have  had  a  far-reaching  influence 
upon  the  development  of  the  public  law.  The  law  of 
municipal  corporations  is  but  a  branch  of  that  larger 
system  of  corporate  jurisprudence  which  has  its  roots  in 
the  Roman  law.  It  must  be  remembered  that  while  the 
corporate  idea  in  the  common  law  was  first  applied  to 
institutions  of  a  quasi-public  nature,  such  as  charitable 
and  ecclesiastical  foundations,  it  was  not  until  the  indus- 
trial companies  began  to  play  an  important  part  that 
the  principles  of  modern  corporation  law  became  firmly 
established.  The  law  of  private  corporations  was  devel- 
oped into  a  coherent  and  logical  body  of  rules  long 
before  the  legal  relations  and  obligations  of  municipal 
corporations  were  determined.  These  clearly  formu- 
lated rules  of  the  law  of  private  corporations  were  in 
many  cases  carried  over  to  the  law  of  public  corpora- 


THE    AMERICAN    POLITICAL    SYSTEM    117 

tions,  and  thus  resulted  a  confusion  of  thought  from 
which  we  are  still  suffering. 

Corporations,  for  the  purposes  of  this  discussion,  may 
bo  divided  into  two  broad  classes,  private  and  public; 
the  former  being  again  divided  into  two  subclasses — 
private  corporations  in  the  strict  sense  of  the  word  and 
private  corporations  affected  with  a  public  interest. 
Public  corporations  include  likewise  two  great  classes, 
namely,  public  institutions,  such  as  state  banks,  of  which 
the  whole  interest  is  in  the  public,  and  those  corporations 
which  are  created  for  the  purpose  of  exercising  gov- 
ernmental powers.  It  is  with  these  governmental  cor- 
porations that  we  have  to  deal.1 

Our  system  of  law  recognizes  two  distinct  classes  of 
public  corporations  created  for  governmental  purposes — 
first,  the  public  quasi-corporation,  which  is  a  local  sub- 
division of  the  state,  created  for  the  purpose  of  partici- 
pating in  the  administration  of  civil  government,  and 
which  for  this  purpose  is  vested  with  certain  of  the 
characteristics  of  corporate  existence,  such  as  the  right  to 
sue  and  to  be  sued.  Counties,  townships,  school  districts, 
poor-law  districts,  and  the  like,  are  instances  of  this  class. 
As  was  said  by  the  court  in  Hamilton  County  vs.  Mig- 
hels : 2  "  Counties  are  at  the  most  but  local  organizations, 
which,  for  the  purpose  of  civil  government,  are  invested 
with  a  few  functions  characteristic  of  corporate  exist- 

1  Dillon,  "Law  of  Municipal  Corporations." 

» 7  Ohio,  109. 
9 


118     PROBLEMS    OF   CITY   GOVERNMENT 

ence.  They  are  local  subdivisions  of  the  state,  created 
of  its  own  sovereign  will,  without  the  particular  solici- 
tation, consent,  or  concurrent  action  of  the  people  who 
inhabit  them." 

It  is  evident  that  corporations  which  are  created  for 
one,  or  at  most  for  two  or  three  specific  purposes,  and 
whose  powers  are  absolutely  restricted  to  such  purposes, 
are  unable  to  meet  the  requirements  of  a  densely  popu- 
lated area.  A  county,  for  instance,  cannot  provide  a 
system  of  public  drainage,  nor  can  a  township  under- 
take to  supply  water  to  its  inhabitants.  In  other  words, 
for  all  the  functions  of  distinctly  local  concern  there  is 
needed  an  authority,  whose  legal  powers  enable  it  to 
meet  the  demands  which  necessarily  arise  in  densely 
populated  districts.  The  modern  municipal  corporation, 
which  combines  the  characteristics  of  the  public  quasi- 
corporation  with  the  broader  powers  necessary  to  meet 
every  local  need,  is  the  result  of  these  economic  and 
social  necessities.  It  may  be  defined  as  an  incorporated 
subdivision  of  the  state— created  partly  as  an  agency  of 
the  state  in  the  administration  of  civil  government,  and 
partly  to  administer  the  local  and  internal  affairs  of 
the  area  incorporated.  Enjoying  greater  powers  than 
the  public  quasi-corporation,  it  is  vested  with  commen- 
surate responsibilities.1  In  the  adjustment  of  these  re- 
sponsibilities the  courts  have  borrowed  many  of  the 
principles  of  the  private  law,  and  have  not  hesitated  in 

'Dillon,  "Law  of  Municipal  Corporations,"  vol.  i,  Chap.  I. 


THE    AMERICAN    POLITICAL    SYSTEM     119 

a  number  of  cases  to  hold  the  municipality  to  the  same 
measure  of  liability  as  the  private  corporation. 

The  existence  of  a  body  of  constitutional  provisions, 
protecting  the  personal  and  property  rights  of  individ- 
uals and  the  more  recent  constitutional  amendments 
designed  to  protect  public  corporations  against  the  in- 
terference of  the  state  legislature,  have  led  to  the  devel- 
opment of  a  system  of  law  regulating  the  powers  and 
duties  of  municipal  corporations,  for  which  we  find  no 
parallel  in  any  country  of  Europe.  European  munici- 
palities, although  given  a  definite  political  status,  have 
no  legal  rights  as  against  the  state  governments.  They 
are  subject  to  the  unrestricted  will  of  the  central  author- 
ities: That  they  have  been  able  to  obtain  for  them- 
selves a  wide  measure  of  home  rule  has  been  due  to  the 
self-control  and  forbearance  of  the  national  legislatures. 
For  this  reason  the  problem  of  municipal  home  rule 
presents  itself  in  an  entirely  different  form  to  the  Euro- 
pean mind  than  to  the  American.  In  France,  for  in- 
stance, the  movement  toward  decentralization  is  one 
which  is  being  effected  through  a  recognition  on  the 
part  of  the  state  legislature  of  the  advantages  of  such  a 
system.  No  attempt  is  made  to  place  further  constitu- 
tional restrictions  on  the  central  government,  and  in- 
deed such  restrictions  would  have  no  binding  force. 
In  the  United  States,  on  the  other  hand,  the  natural 
tendency  to  appeal  to  the  courts  to  remedy  every  abuse, 
combined  with  the  growing  distrust  of  the  state  legisla- 


120     PROBLEMS    OF   CITY    GOVERNMENT 

tures,  has  led  to  the  belief  that  through  constitutional 
restrictions  it  is  possible  to.  force  upon  the  state  legis- 
latures a  policy  of  non-interference  with  the  internal 
affairs  of  municipalities. 

The  judicial  interpretation  of  the  rights  and  obliga- 
tions of  municipalities  has  passed  through  two  distinct 
stages.  During  the  first  period  ending,  roughly  speak- 
ing, with  1870,  the  state  constitutions  contained  com- 
paratively few  provisions  relating  to  municipalities, 
thus  giving  to  the  legislatures  wide  discretionary  power 
in  determining  the  relation  between  city  and  state. 

The  use  made  of  this  power  soon  reduced  the  cities 
to  a  condition  of  absolute  dependence  upon  legislative 
will.  The  larger  cities  in  particular  became  the  football 
of  party  politics.  The  temptation  to  use  the  power  over 
municipal  expenditures  for  personal  and  party  ends 
proved  irresistible.  The  Tweed  Ring  in  New  York  and 
the  Gas  Trust  in  Philadelphia  are  striking  instances  of 
this  fact.  Furthermore,  as  has  been  well  shown  by  Pro- 
fessor Goodnow,1  our  decentralized  government,  under 
which  so  many  local  officials  are  elected,  makes  it  neces- 
sary for  the  dominant  party  in  the  state  legislature  to 
control  the  elections  in  municipalities.  The  struggle  for 
party  supremacy  thus  increases  the  tendency  toward 
state  interference. 

The  rules  of  law  developed  by  the  courts  have 
favored  rather  than  retarded  the  policy  of  state  inter- 

lGoodnow,  "Municipal  Problems"  and  "Municipal  Home  Rule." 


THE    AMERICAN    POLITICAL    SYSTEM     121 

ference.  One  of  the  fundamental  principles  of  Ameri- 
can corporation  law  is  that,  while  the  charter  of  a  private 
corporation  is  a  contract  between  the  state  and  the  cor- 
poration, which  the  state  is  prohibited  from  impairing 
by  Article  I,  Section  10,  of  the  federal  constitution,  the 
charter  of  a  public  corporation  is  in  no  sense  a  contract. 
Such  a  charter  is  rather  in  the  nature  of  a  public  privi- 
lege, revokable  at  all  times  and  subject  to  the  discretion- 
ary power  of  the  state  legislature. 

The  courts  recognized  the  danger  to  the  unity  of 
political  life  which  any  other  interpretation  would  in- 
volve. Municipalities  would  be  able  to  enforce  their 
will  even  when  in  conflict  with  the  interests  of  the  state 
at  large.  The  unqualified  application  of  this  rule,  on 
the  other  hand,  placed  the  municipalities  at  the  com- 
plete mercy  of  the  state  legislature  and  gave  rise  to  the 
conditions  which  have  called  forth  the  movement  for 
municipal  home  rule. 

Municipal  home  rule,  as  it  is  usually  understood,  is 
the  power  of  the  municipality  to  determine  local  policy 
in  all  matters  of  distinctly  local  concern  without  inter- 
ference from  any  outside  authority,  whether  it  be  the 
state  or  any  subdivision  thereof.  It  also  involves  the 
power  to  determine  the  means  and  methods  to  be  pur- 
sued in  the  administration  of  those  functions  of  more 
general  or  state  concern  which  are  delegated  to  the 
municipality  by  the  state;  subject  always  to  those  pow- 
ers of  state  control  which  in  the  interests  of  the  state 


122  PROBLEMS  OF  CITY  GOVERNMENT 

at  large  may  prescribe  a  minimum  standard  of  effi- 
ciency. The  main  purpose  of  the  struggle  for  municipal 
home  rule  has  been  to  prevent  the  state  legislature  from 
substituting  its  will  for  the  will  of  the  local  authorities. 
The  tendency  on  the  part  of  the  state  legislature  to 
encroach  upon  local  powers  is  explained  by  the  peculiar 
historical  conditions  accompanying  the  growth  of  munic- 
ipalities in  the  United  States.  The  various  influences 
and  forces  that  have  contributed  to  produce  the  present 
situation  are  so  closely  interwoven  that  it  is  difficult  to 
separate  them  into  their  constituent  parts. 

Municipal  home  rule  does  not  involve  so  much  a 
change  in  our  political  system  as  a  change  in  the  atti- 
tude of  the  city  population  toward  local  affairs.  It 
is  important  to  emphasize  this  fact,  because  there  is 
a  natural  tendency  in  our  American  political  life  to 
regard  every  shortcoming  as  capable  of  being  easily 
remedied  by  a  change  in  governmental  organization, 
which  has  led  to  the  belief  that  constitutional  prohibi- 
tions can  so  modify  the  policy  of  the  state  legislatures 
as  to  guarantee  to  cities  wide  freedom  of  action. 

The  history  of  the  constitutional  amendments  in- 
tended to  guarantee  municipal  home  rule  furnishes  one 
of  the  most  interesting  chapters  in  American  history, 
because  it  illustrates  the  danger  of  attempting  to  crys- 
tallize into  constitutional  provisions  a  political  relation- 
ship which  must,  from  the  very  nature  of  the  case,  be 
constantly  changing.  The  purpose  of  these  constitu- 


tional  amendments  was  to  establish  a  fixed  relationship 
between  the  state  legislature  and  the  cities  of  the  state. 
There  is  no  other  instance,  either  in  our  federal  or 
state  constitutional  history,  which  illustrates  so  clearly 
the  futility  of  trying  to  obtain  by  constitutional  amend- 
ment that  which  can  be  secured  only  through  the  con- 
stant alertness  and  watchfulness  of  the  people.  After 
years  of  fruitless  effort  we  are  gradually  beginning  to 
realize  that  municipal  home  rule  cannot  be  secured 
through  this  means.  The  endeavor  to  prevent  the  state 
legislature,  by  means  of  constitutional  prohibitions, 
from  interfering  with  the  local  affairs  of  municipalities 
constantly  involves  the  danger  of  restricting  its  author- 
ity in  matters  in  which  its  action  is  not  only  helpful, 
but  absolutely  necessary.  Probably  the  best  instance 
is  to  be  found  in  the  constitutional  amendments  which 
first  became  general  throughout  the  United  States,  and 
whose  primary  purpose  was  to  prevent  the  state  leg- 
islature from  constantly  tampering  with  the  govern- 
mental organization  of  cities  of  the  state.  Within  a 
comparatively  brief  period  twenty-two  states  1  adopted 

1  Arkansas  Constitution,  Chap.  XII,  Sec.  3. 
California  Constitution,  Chap.  XI,  Sec.  6. 
Illinois  Constitution,  Chap.  IV,  Sec.  22. 
Indiana  Constitution,  Chap.  XI,  Sec.  13. 
Iowa  Constitution,  Chap.  Ill,  Sec.  30. 
Kansas  Constitution,  Chap.  XII,  Sec.  1. 
Kentucky  Constitution,  Sees.  56,59(17). 

Louisiana  Constitution,  Sec.  46.      (This  excepts  the  city  of 
New  Orleans  and  levee  districts  and  parishes.) 


124     PROBLEMS    OF    CITY    GOVERNMENT 

amendments  forbidding  the  incorporation  of  cities  by 
special  act. 

In  some  cases  these  amendments  took  the  form  of 
prohibitions  against  special  charters,  in  others  of  posi- 
tive requirements  for  general  incorporation  acts.  Their 
purpose  was  the  same :  First,  to  prevent  the  legislature 
from  interfering  with  the  local  affairs  of  the  municipal- 
ities by  forcing  new  charters  upon  them;  secondly,  to 
discourage  practices  which  had  become  deeply  rooted 
i«  the  habits  of  the  inhabitants  of  our  larger  cities, 
namely,  the  constant  appeals  to  the  state  legislature  for 
charter  amendments  whose  purpose  was  not  always  in 
the  interest  of  the  municipality;  and  finally,  to  relieve 
the  state  legislature  from  the  overwhelming  burden  of 
dealing  with  the  mass  of  purely  local  problems  involved 
in  the  granting  and  amending  of  local  charters. 

The  first  amendments  to  be  passed  were  those  prohib- 

Mississippi  Constitution,  Sec.  178. 
Missouri  Constitution,  Chap.  IV,  Sec.  53. 
Nebraska  Constitution,  Chap.  Ill,  Sec.  15. 
North  Dakota  Constitution,  Sec.  69,  p.  33. 
Ohio  Constitution,  Chap.  XIII,  Sees.  1,  6. 
Pennsylvania  Constitution,  Chap.  Ill,  Sec.  7. 
South  Dakota  Constitution,  Chap.  Ill,  Sec.  23. 
Tennessee  Constitution,  Chap.  XI,  Sec.  1. 
Washington  Constitution,  Chap.  II,  Sec.  28  (8). 
West  Virginia  Constitution,  Chap.  VI,  Sec.  39. 
Wisconsin  Constitution,  Amendment  IV,  Sec.  31. 
Wyoming  Constitution,  Chap.  Ill,  Sec.  27. 
Minnesota  Constitution,  Chap.  IV,  Sec.  3(7,  9). 
Texas  Constitution,  Chap.  XI,  Sees.  4,  5. 
(Goodnow,  "Municipal  Home  Rule,"  p.  56.) 


THE    AMERICAN    POLITICAL    SYSTEM    125 

iting  the  incorporation  of  cities  by  special  charter  and 
forbidding  the  legislature  from  interfering  with  the  in- 
ternal affairs  of  the  municipalities  by  means  of  special 
laws.  They  were  intended  to  put  an  end  to  that  long 
series  of  local  and  special  laws  prescribing  the  execution 
of  public  works  and  the  expenditure  of  public  moneys, 
which  had  worked  great  harm  to  the  finances  of  Ameri- 
can cities,  and  furthermore  to  prevent  the  revocation  of 
city  charters  for  the  purpose  of  legislating  existing  offi- 
cials out  of  office.  This  latter  device  was  commonly  used 
whenever  the  political  complexion  of  the  city  adminis- 
tration differed  radically  from  that  of  the  state  legis- 
lature. 

Soon  after  the  passage  of  these  amendments  the  diffi- 
culties presented  by  their  enforcement  became  apparent. 
Constitutional  amendments,  no  matter  how  specific  in 
terms,  cannot  overcome  the  traditions  of  legislative  prac- 
tice. These  were  such  as  to  make  impossible  the  enforce- 
ment of  the  constitutional  requirements  in  the  spirit  in 
which  they  were  intended.  From  the  earliest  period  of 
our  history  the  practice  of  state  legislatures  has  been  to 
prescribe  minutely  both  the  form  of  municipal  govern- 
ment and  the  sphere  of  municipal  activity.  This  alone 
makes  it  impossible  to  frame  general  municipal  corpora- 
tion acts  wThich  will  at  once  meet  the  needs  of  the  larger 
and  smaller  cities.  If  in  drafting  such  acts  the  needs 
of  the  smaller  cities  be  taken  as  the  standard,  the  devel- 
opment of  the  larger  cities  will  be  hampered  by  reason 


126  PROBLEMS  OF  CITY  GOVERNMENT 

of  the  inadequacy  of  the  governmental  machinery.  A 
city  of  25,000  does  not  require  the  same  number  of 
executive  departments  nor  as  wide  a  range  of  function 
as  does  a  metropolitan  center  of  one  or  two  million. 

Two  possible  plans  presented  themselves  for  the  solu- 
tion of  this  difficult  problem:  one  involved  a  complete 
change  in  the  method  of  incorporating  municipalities; 
the  other  was  to  permit  the  classification  of  cities.  As 
to  the  first,  it  is  evident  that  had  the  state  legislature, 
instead  of  adhering  to  the  traditional  plan  of  prescrib- 
ing minutely  the  form  of  government  and  enumerating 
in  detail  the  functions  which  the  municipality  may 
exercise,  simply  provided  a  general  framework  of  gov- 
ernment and  made  a  general  grant  of  municipal  powers, 
then  the  constitutional  amendments  could  have  effected 
the  purposes  for  which  they  were  intended.  But  this 
would  have  meant  a  complete  change  in  legislative 
policy. 

If,  for  instance,  the  legislature  in  the  general  munic- 
ipal corporation  act  had  provided  that  municipalities 
shall  be  organized  with  an  elective  mayor  and  council, 
with  as  many  executive  departments  as  the  authorities 
might  determine,  and  endowed  with  all  powers  not  in- 
consistent with  the  law  of  the  state,  it  would  then  have 
been  possible  to  make  one  general  law  for  all  the  cities 
of  the  state.1  So  radical  a  change  in  legislative  policy 

1  See  model  charter  contained  in  "Municipal  Program,"  published 
by  the  National  Municipal  League. 


THE    AMERICAN   POLITICAL   SYSTEM    127 

could  hardly  be  expected,  and  it  is  not  surprising,  there- 
fore, that  the  state  legislatures  soon  resorted  to  the 
policy  of  classifying  cities,  and  that  the  courts  gave 
sanction  to  this  practice.  The  early  decisions  of  our 
state  supreme  courts  with  reference  to  classification 
were  dictated  by  the  necessities  of  the  situation,  as  is 
well  illustrated  by  a  number  of  Pennsylvania  cases.  In 
Wheeler  vs.  Philadelphia,1  the  question  presented  to  the 
court  was  whether  Section  7,  Article  III,  of  the  con- 
stitution of  Pennsylvania  prohibited  the  classification 
of  municipalities.  This  section  provided  that  "  the 
General  Assembly  shall  not  pass  any  local  or  special 
law — regulating  the  affairs  of  counties,  cities,  townships, 
wards,  boroughs,  or  school  districts  .  .  .  incorporating 
cities,  towns,  or  villages,  or  changing  their  charters." 
The  Act  of  the  Legislature  of  May  23,  1874,  divided  the 
cities  of  the  commonwealth  into  three  classes.  The  deci- 
sion of  the  court  is  based  mainly  on  the  principle  of 
expediency.  "  If  the  classification  of  cities  is  in  vio- 
lation of  the  statutes,"  says  the  court,  "  it  follows  of 
necessity  that  Philadelphia  as  a  city  of  the  first  class 
must  be  deprived  of  the  legislation  necessary  for  her 
present  and  future  development,  or  that  the  smaller 
inland  cities  must  be  burdened  with  legislation  wholly 
unfit  for  their  needs. ' ' 

With  the  choice  thus  presented  there  was  no  alterna- 
tive but  to  uphold  the  validity  of  classification.     This 

1  77  Pennsylvania,  338. 


128      PROBLEMS    OF    CITY    GOVERNMENT 

decision  immediately  raised  the  question  whether  classi- 
fication might  be  continued  indefinitely;  a  question 
finally  settled  in  Ayar's  appeal,  which  involved  the 
constitutionality  of  the  Pennsylvania  statute  of  May  24, 
1887,  dividing  the  cities  of  the  state  into  seven  classes. 
The  Act  of  1874  dividing  the  cities  of  the  state  into 
three  classes  was  sustained  because  it  was  within  the 
spirit  if  not  within  the  letter  of  the  constitution.  In 
Ayar  's  appeal l  the  court  said :  "It  is  impossible  to 
suggest  any  legislation,  that  has  or  may  hereafter  be- 
come necessary  for  any  member  of  either  class,  that 
cannot,  without  detriment  to  other  members  of  the 
same  class,  be  made  applicable  to  all  of  them.  If  classi- 
fication had  stopped  where  the  Act  of  1874  left  it,  it 
would  have  been  well;  but  it  did  not.  Without  the 
slightest  foundation  in  necessity,  the  number  of  classes 
was  soon  increased  to  five,  and  afterwards  to  seven, 
and,  if  the  vicious  principle  on  which  that  was  done 
be  recognized  by  the  courts,  the  number  may  at  any 
time  be  further  increased  until  it  equals  the  number 
of  cities  in  the  commonwealth.  The  only  possible  pur- 
pose of  such  classification  is  evasion  of  the  constitutional 
limitation;  and,  as  such,  it  ought  to  be  unhesitatingly 
condemned. ' ' 

This  tendency  toward  minute  classification  has  been 
far  more  pronounced  in  those  states  in  which  the  courts 
have  not  drawn  the  line  as  strictly  as  in  Pennsylvania. 

1  122  Pennsylvania,  266. 


THE    AMERICAN    POLITICAL    SYSTEM    129 

In  California  a  division  of  cities  into  six  classes  has  been 
approved.  The  Supreme  Court  also  upheld  a  law  in 
which  the  state  legislature  divided  forty-eight  counties 
of  the  state  into  forty-five  classes.  In  Ohio,  prior  to 
the  recent  decision  of  the  Supreme  Court  declaring  the 
system  of  classification  unconstitutional,  the  cities  of  the 
state  were  divided  into  two  classes,  each  subdivided  into 
several  grades. 

In  short,  the  net  result  of  the  experience  of  the 
various  states  has  been  that  if  municipal  home  rule  is 
to  be  secured  constitutional  amendments  do  not  furnish 
the  means  to  this  end.  The  necessary  changes  relate 
rather  to  the  policy  of  the  legislature  and  to  the  atti- 
tude of  the  people  of  the  city  toward  local  affairs. 
These  changes  cannot  be  brought  about  through  the 
mandate  of  the  lawgiver,  but  must  await  the  develop- 
ment of  a  clearer  appreciation  on  the  part  of  the  people 
that  city  problems  are  to  be  worked  out  through  their 
own  efforts  rather  than  by  an  indefinite  increase  of 
prohibitory  statutes. 

Repeated  attempts  at  evasion  of  constitutional  pro- 
hibitions on  local  and  special  legislation  have  compelled 
the  courts  to  develop  a  number  of  tests  for  the  purpose 
of  determining  whether  legislation,  which  purports  to 
be  general,  is  in  reality  special.1 

First. — All  classification  must  be  based  upon  substan- 

1  Charles  Chauncey  Binney,  "Restrictions  upon  Local  and  Special 
Legislation  in  State  Constitutions." 


130     PROBLEMS    OF    CITY   GOVERNMENT 

tial  distinctions  which  make  one  class  really  different 
from  another.  In  general,  it  may  be  said  that  the 
courts  have  regarded  differences  in  population  as  the 
most  important,  if  not  the  only  basis  for  substantial 
distinctions,  although  in  some  cases  they  have  admitted 
geographical  situation  as  a  proper  basis.  As  regards 
the  degree  of  difference  necessary  to  distinguish  one 
class  from  another,  there  has  been  great  diversity  of 
opinion. 

Second. — The  basis  of  classification  must  be  germane 
to  the  purpose  of  the  law.  This  rule  has  acted  as  an 
effectual  check  upon  indiscriminate  classification  for  all 
purposes.  The  courts  require  that  there  shall  be  a 
direct  relation  between  the  basis  of  classification  and 
the  purpose  of  the  law;  in  other  words,  a  logical  and 
reasonable  justification  for  making  a  distinction.  Thus 
a  law  dividing  cities  into  classes  on  the  basis  of  geo- 
graphical situation  for  the  purpose  of  prescribing  dif- 
ferent methods  of  electing  the  mayor  would  violate  this 
rule;  inasmuch  as  there  is  no  direct  relation  between 
the  situation  of  a  city  and  the  manner  of  choosing  local 
officials.1 

Third. — Classification  must  not  be  based  upon  exist- 
ing circumstances  nor  upon  those  of  limited  duration, 
except  where  the  object  of  the  law  is  itself  a  temporary 
one.  This  rule  is  designed  to  prevent  the  legislature 
from  making  a  class  which  shall  exist  for  a  short  period, 

1  Goodnow,  "Municipal  Home  Rule,"  p.  76. 


THE    AMERICAN   POLITICAL   SYSTEM    131 

and  which  shall  manifestly  evade  the  constitutional  pro- 
vision against  special  legislation. 

Fourth. — To  whatever  class  a  law  may  apply,  it 
must  apply  equally  to  every  member  thereof,  except 
where  its  application  is  affected  by  the  existence  of  prior 
unrepealed  local  or  special  laws.  The  evident  purpose 
of  this  rule  is  to  prevent  the  legislature  from  making 
special  classes  of  certain  cities  by  exempting  them  from 
the  rules  applicable  to  all  the  cities  of  their  class. 

Fifth. — If  the  classification  be  valid,  the  number  of 
members  in  a  class  is  wholly  immaterial.  The  adoption 
of  this  rule  has  permitted  the  legislatures  in  many  of 
our  states  so  to  classify  cities  as  to  leave  but  one  city 
in  a  class.  Thus  in  Pennsylvania,  cities  of  1,000,000 
inhabitants  or  over  are  placed  in  one  class.  As  Phila- 
delphia is  the  only  city  of  such  size,  general  legislation 
for  cities  of  the  first  class  is  in  reality  special  legislation 
for  Philadelphia.1 

Because  of  these  limitations  which  the  courts  have 
seen  fit  to  place  upon  their  original  interpretation  of 
the  meaning  of  general  and  special  laws,  it  may  be  said 
that  the  constitutional  prohibitions  have  failed  to  effect 
the  purposes  for  which  they  were  designed.  This  fail- 
ure cannot  be  ascribed  to  a  lack  of  good  will,  either  on 
the  part  of  the  legislature  or  the  courts.  The  most 
that  can  be  said  is  that  the  legislatures  have  established 

1  The  decision  of  the  Supreme  Court  upholding  the  Greater 
Pittsburg  law  will  add  another  city  to  this  class. 


132      PROBLEMS    OF    CITY    GOVERNMENT 

methods  of  municipal  incorporation  incompatible  with 
a  strict  interpretation  of  the  constitutional  prohibitions. 

The  general  recognition  of  the  failure  of  absolute 
prohibitions  upon  local  and  special  legislation,  combined 
with  a  growing  appreciation  of  the  necessity  of  special 
legislation  under  certain  circumstances,  finds  expression 
in  the  more  recent  constitutions.  New  York  adopted 
the  plan  of  incorporating  a  scheme  of  classification  into 
the  Constitution.  The  cities  of  the  commonwealth  are 
divided  into  three  classes.  General  city  laws  are  defined 
to  be  those  that  apply  equally  to  all  the  cities  of  a  class ; 
special  city  laws,  those  which  apply  to  less  than  all  the 
cities  of  a  class.  The  Constitution  does  not  prohibit 
special  legislation,  but  simply  provides  that  whenever  a 
law  is  made  applicable  to  less  than  all  the  cities  of  a 
class,  it  shall  be  submitted  to  the  mayor,  or  mayor  and 
council  of  the  cities  affected.  If  disapproved  by  the 
local  authorities,  it  is  returned  to  the  House  in  which  it 
originated,  and  must  be  passed  by  a  two-thirds  vote  of 
both  Houses,  and  is  then  subject  to  the  approval  or  veto 
of  the  governor.  The  constitutional  convention  which 
framed  this  provision  recognized  that  the  increasing 
diversity  of  municipal  conditions  incident  to  the  growth 
of  the  great  cities  makes  special  legislation  necessary. 
By  giving  to  the  cities  affected  a  voice  in  the  passage 
of  such  legislation  the  interests  of  both  city  and  state 
are  subserved. 

The  next  step  in  this  movement  to  secure  municipal 


THE    AMERICAN    POLITICAL   SYSTEM    133 

home  rule  was  to  prevent  the  legislature  from  placing 
matters  of  local  concern  in  the  hands  of  state  commis- 
sions. The  experience  with  such  commissions  in  a  num- 
ber of  cities  has  been  disastrous.  The  impossibility  of 
holding  them  strictly  accountable  to  local  public  opinion 
led  to  extravagant  expenditures,  and  in  a  number  of 
instances  resulted  in  a  burden  of  debt,  which  for  a  time 
prevented  the  execution  of  much-needed  public  improve- 
ments. The  classic  instance  of  the  evils  of  the  system  is 
the  construction  of  the  City  Hall  in  Philadelphia,  which 
was  placed  in  the  hands  of  a  commission  appointed  by  the 
governor,  with  power  to  requisition  councils  for  such 
funds  as  it  might  require.  The  powers  of  this  commis- 
sion threatened  for  a  time  to  destroy  the  control  of  the 
council  over  local  finances.1  The  extravagance  incident 
to  the  construction  of  this  municipal  building  led  the 
constitutional  convention  of  1873  to  insert  a  provision 
forbidding  the  legislature  from 2  ' '  delegating  to  any 
special  commission,  private  corporation,  or  association 
any  power  to  make,  supervise,  or  interfere  with  any 
municipal  improvement,  money,  property,  or  effects, 
whether  held  in  trust  or  otherwise,  or  to  levy  taxes  or 
perform  any  municipal  function  whatever."  Similar 
provisions  have  been  inserted  in  the  constitutions  of  a 
number  of  other  states. 


1  The  act  of  the  legislature  was  sustained  by   the  Supreme  Court 
of  Pennsylvania  in  the  case  of  Perkins  vs.  Slack.     86,  Penna.,  283. 
*  Art.  IX,  Sec.  16. 
10 


134     PROBLEMS   OF   CITY   GOVERNMENT 

The  most  recent  step  in  the  movement  for  munic- 
ipal home  rule  consists  in  giving  to  cities  the  right  to 
frame  their  own  charters;  thus  placing  the  city  char- 
ter in  the  same  relation  to  the  inhabitants  of  the  city 
as  the  state  constitution  to  the  inhabitants  of  the  state. 
The  State  of  Missouri  took  the  lead  in  this  respect.  The 
constitutional  convention  of  1875  inserted  a  clause,  giv- 
ing power  to  cities  with  a  population  of  more  than 
100,000  to  frame  their  own  charters  through  a  locally 
elected  board  of  thirteen  freeholders.  It  was  provided 
that  charters  so  framed  should  go  into  effect  without 
being  submitted  to  the  legislature,  but  subject  to  amend- 
ment by  the  general  laws  of  the  State.  St.  Louis  took 
advantage  of  this  provision  in  1876,  Kansas  City  in  1890. 

In  December,  1904,  a  Board  of  Freeholders  was 
again  elected  in  Kansas  City  to  frame  a  charter  for 
the  city.  This  charter  was  submitted  to  the  people  of 
the  city  at  a  special  election,  but  was  rejected.  The 
Board  of  Freeholders  is  now  at  work  framing  another 
charter  which  is  to  be  submitted  to  the  people  in  the 
fall  of  1908. 

In  1879  California  adopted  a  similar  plan,  but  re- 
quired that  the  charter  be  submitted  to  the  legislature 
after  adoption  by  the  city.  The  legislature,  however, 
is  compelled  to  adopt  or  reject  the  charter  as  a  whole. 
This  privilege,  which  was  first  restricted  to  cities  of 
100,000  or  over,  has  been  gradually  extended,  until  in 
1890  all  cities  with  a  population  of  3,500  or  over  were 


THE    AMERICAN    POLITICAL    SYSTEM    135 

included.  The  cities  of  Los  Angeles,  Oakland,  Stockton, 
San  Diego,  and  Sacramento  have  adopted  charters  under 
the  constitutional  provision.  San  Francisco,  after  two 
unsuccessful  attempts  under  this  freeholders'  clause  of 
the  Constitution,  finally  succeeded  in  adopting  a  home- 
rule  charter,  which  went  into  effect  in  January,  1900, 
and  to  which  amendments  were  made  in  February,  1903. 

In  1889  a  constitutional  convention  of  the  State  of 
Washington  inserted  a  similar  provision,  giving  the 
right  to  frame  charters  to  cities  with  a  population  of 
20,000  or  over.  The  Missouri  rule  was  adopted  which 
permitted  city  charters  to  go  into  effect  without  rati- 
fication by  the  state  legislature.  Seattle  and  Tacoma, 
the  only  cities  of  the  required  size,  both  adopted  char- 
ters under  this  provision.  Provisions  of  a  similar  char- 
acter are  contained  in  the  constitutions  of  Minnesota, 
Colorado,  and  Wyoming. 

The  fact  that  all  these  charters  are  subject  to  general 
state  laws  makes  it  possible  for  the  state  legislature, 
if  it  cares  to  use  its  power,  to  nullify  the  home-rule 
privileges.  Up  to  the  present  time,  however,  these  char- 
ter-framing privileges  have  had  a  salutary  restraining 
effect  upon  the  state  legislatures. 

The  attempts  that  have  been  made  to  assure  to  cities 
a  certain  freedom  of  action  without  danger  of  interfer- 
ence from  any  extraneous  authority  show  that  the  real 
difficulty  is  to  obtain  a  change  of  policy  in  the  state 
legislature.  Experience  has  shown  that  in  any  system 


136     PROBLEMS    OF    CITY    GOVERNMENT 

of  government,  discretionary  authority  must  be  lodged 
in  some  organ  of  the  body  politic.  To  attempt  to  pre- 
scribe a  limit  to  legislative  discretion  through  constitu- 
tional prohibitions,  while  it  may  remedy  one  particular 
abuse,  usually  gives  rise  to  a  series  of  evils  quite  as  great 
as  those  at  which  the  prohibitions  are  aimed.  Students 
of  municipal  government  are  beginning  to  recognize  that 
the  solution  of  the  problem  of  municipal  home  rule  in- 
volves a  change  of  attitude  on  the  part  of  the  state  leg- 
islature, an  attitude  of  self-control  and  self-restraint, 
but  with  the  possibility  of  interference  where  interfer- 
ence is  really  necessary.  This  change  must  come,  in  the 
last  analysis,  from  the  electors  themselves.  In  other 
words,  the  standards  of  public  opinion  must  force  upon 
the  legislature  a  policy  of  non-interference.  The  diffi- 
culty of  developing  such  standards  in  our  American 
communities  is  due  largely  to  the  fact  that  our  consti- 
tution so  thoroughly  protects  the  personal  and  property 
rights  of  the  individual  that  the  interest  and  watchful- 
ness of  the  average  citizen  are  greatly  diminished.  The 
feeling  of  security  is  so  strong  that  it  is  difficult  to 
arouse  public  interest  to  an  appreciation  of  the  dangers 
of  the  situation. 

In  closing  this  discussion  it  only  remains  to  suggest 
a  few  changes  in  legislative  policy,  which  would  doubt- 
less contribute  to  the  development  of  a  more  healthful 
relation  between  city  and  state.  It  is  important  to  bear 
in  mind  that  no  form  of  government  can  absolutely 


THE    AMERICAN    POLITICAL    SYSTEM     137 

assure  such  a  relation;  the  most  that  can  be  done  is  to 
facilitate  its  development.  To  bring  about  a  large  meas- 
ure of  local  self-government  at  least  two  changes  in 
legislative  policy  are  necessary:  First,  the  method  of 
municipal  incorporation  should  be  so  changed  that  the 
powers  of  the  municipality,  instead  of  being  minutely 
specified,  should  be  conferred  by  a  general  grant  to  ex- 
ercise all  powers  not  inconsistent  with  state  laws.  At 
present,  the  municipality  must  look  to  its  charter  for 
every  power  which  it  wishes  to  exercise,  and  such  power 
must  be  either  specifically  granted,  fairly  implied,  or 
essential  to  the  declared  objects  and  purposes  of  the 
corporation  in  order  to  make  its  exercise  possible.  This 
means  that  whenever  the  city  is  contemplating  an  exten- 
sion of  its  functions  an  appeal  is  made  to  the  state  leg- 
islature for  further  powers.  These  constant  appeals 
constitute  one  of  the  influences  strengthening  the  tend- 
ency toward  legislative  interference.  The  legislature 
is  fully  conscious  of  the  fact  that  municipal  activity  is 
dependent  upon  its  will,  and  is,  therefore,  always  ready 
to  direct  such  activity.  If,  instead  of  minute  delegation 
of  functions,  the  state  were  to  give  to  the  municipalities 
the  right  to  exercise  all  powers  not  inconsistent  with  the 
state  laws,  one  of  the  incentives  to  legislative  interfer- 
ence in  local  affairs  would  disappear.1 

A  second  change  in   legislative  policy  involves  the 

1  Report    on    Municipal    Program    of    the  National  Municipal 
League. 


138      PROBLEMS    OF    CITY    GOVERNMENT 

recognition  of  a  distinction  between  state  and  local  func- 
tions. No  one  will  deny  that  in  the  exercise  of  those 
functions  which  concern  the  state  at  large,  such  as  the 
management  of  the  roads,  the  administration  of  the  poor 
law,  the  administration  of  justice,  etc.,  the  control  of 
the  state  should  remain  unimpaired.  On  the  other  hand,. 
as  regards  functions  of  distinctly  local  concern,  the 
municipality  should  be  permitted  to  develop  its  own 
policy  in  its  own  way  and  on  the  basis  of  its  own  social 
and  economic  conditions.  The  recognition  of  this  dis- 
tinction by  the  state  legislature  would  do  away  with 
much  of  the  confusion  which  now  exists  regarding  the 
degree  of  central  control  which  should  be  exercised  over 
cities.1 

In  order  to  make  the  foregoing  changes  effective,  it 
will  be  necessary  to  develop  a  system  of  administrative 
control  distinct  from  legislative  control.  At  the  pres- 
ent time,  with  our  decentralized  system  of  administra- 
tion, the  only  really  effective  responsibility  to  which 
local  officials  are  subject  is  the  control  exercised  at  the 
polls  and  by  the  law.  The  former  is  only  effectively 
enforced  at  stated  intervals.  If  local  officials  in  the 
exercise  of  discretionary  power  cause  inconvenience  or 
even  positive  harm  to  a  citizen,  there  is  no  redress.  The 
control  which  the  legislature  exercises  through  its  com- 
mittees, or  through  changes  in  legislation,  cannot  be 

1  Cf.  Goodnow,  "Municipal  Home  Rule,"  and  "Municipal  Prob- 
lems." 


THE    AMERICAN    POLITICAL    SYSTEM    139 

effective,  because  it  is  impossible  for  so  large  an  elective 
body  to  "  inform  itself  of  the  conditions  and  needs  of 
particular  localities."  Furthermore,  the  fact  that  the 
legislature  in  most  of  the  states  meets  biennially,  and 
that  it  is  a  body  subject  to  constant  changes,  tends  to 
diminish  its  efficiency  as  a  supervising  organ.  The  re- 
sponsibility of  officials  to  the  courts,  it  must  be  borne 
in  mind,  can  only  be  enforced  in  cases  of  actual  mal- 
feasance or  criminal  negligence.  This  means  that  in 
cases  of  inefficiency  not  resulting  from  either  of  these 
causes  there  is  no  redress. 

The  only  form  of  effective  supervision  over  lower 
administrative  officials  is  through  the  control  of  higher 
administrative  officers  or  boards.  This  is  particularly 
true  of  those  local  officials  who  are  performing  functions 
which  concern  the  welfare  of  the  state  at  large.  In  such 
cases  the  possibility  of  appealing  from  the  decision  of  a 
lower  to  a  higher  official  is  a  means  of  control,  which  no 
other  system  can  provide.  We  have  a  constant  demon- 
stration of  this  fact  in  our  federal  service  and  in  the 
civil  service  of  every  European  country. 

As  was  pointed  out  before,  the  adoption  of  all  these 
changes,  which  it  will  be  noted  are  changes  in  legislative 
policy  and  do  not  involve  an  increase  of  constitutional 
prohibitions,  can  at  most  facilitate  such  an  adjustment 
of  the  relations  between  city  and  state  as  will  maintain 
the  unity  of  the  political  life  of  the  state,  and  at  the 
same  time  assure  such  a  degree  of  local  self-government 


140     PROBLEMS    OF   CITY   GOVERNMENT 

as  will  stir  civic  activity  and  enlist  the  interest  and 
energies  of  the  population  in  the  solution  of  local  prob- 
lems. 

REFERENCES 

ABBOTT,  H.  S.  "Treatise  on  the  Law  of  Municipal  Corpora- 
tions." St.  Paul:  Keefe-Davidson,  1905. 

BINNEY,  C.  C.  "Restrictions  upon  Local  and  Special  Legisla- 
tion in  State  Constitutions."  Philadelphia:  McKay,  1894. 

COOLEY,  T.  M.  "Constitutional  Limitations,"  Chap.  VIII. 
Boston:  Little,  Brown,  1903. 

DILLON,  J.  F.  "  Commentaries  on  the  Law  of  Municipal 
Corporations."  Little,  Brown,  1890. 

EATON,  D.  B.  "The  Government  of  Municipalities."  New 
York:  Macmillan,  1899. 

FAIRLIE,  J.  A.  "The  Centralization  of  Administration  in  New 
York  State."  New  York:  Columbia  University,  1898. 

"Municipal  Administration."    Macmillan,  1901. 

"Essays    in    Municipal    Administration."    Macmillan, 

1908. 

GOODNOW,  F.  J.     "Municipal  Problems."    Macmillan,  1897. 

"Municipal  Home  Rule."    Macmillan,  1897. 

NATIONAL  MUNICIPAL  LEAGUE.     "Municipal  Program."    Mac- 
millan, 1900. 

OBERHOLTZER,  E.  P.  "Home  Rule  for  Our  American  Cities." 
Annals  of  American  Academy  of  Political  and  Social  Science, 
May,  1893. 

ORTH,  S.  P.  "The  Centralization  of  Administration  in  Ohio." 
Columbia  University,  1903. 


CHAPTER   VII 

THE   LEGAL   POWERS   OP   THE   MUNICIPALITY 

THE  question  of  the  scope  and  limits  of  municipal 
powers  is  but  one  phase  of  the  broader  question  of  the 
relation  of  the  municipality  to  the  state.  The  problem 
presents  two  aspects  which  require  independent  treat- 
ment: First,  it  is  necessary  to  ascertain  the  princi- 
ples that  have  determined  the  interpretation  of  mu- 
nicipal powers;  and,  second,  an  examination  must  be 
made  of  the  efforts  of  the  courts  to  secure  to  the 
municipality  a  certain  definite  sphere  of  local  action 
in  which  it  shall  be  free  from  the  interference  of  the 
state  legislature.  The  preceding  chapter  explained 
how  the  powers  of  the  legislature  over  municipalities 
have  been  gradually  restricted  by  means  of  constitu- 
tional amendments.  Independent  of  these  amendments, 
and  in  many  cases  supplementing  them,  the  courts  have 
formulated  rules  of  law  which  are  intended  to  secure 
to  the  municipality  a  certain  measure  of  control  over 
its  own  affairs. 

The  discussion  of  municipal  powers  belongs  to  the 
subject  of  general  corporation  law;  in  fact,  the  rela- 
tion between  the  law  of  public  and  private  corporations 

141 


142   PROBLEMS  OF  CITY  GOVERNMENT 

is  so  intimate  that  a  study  of  the  powers  of  the  munici- 
pality presupposes  an  acquaintance  with  the  general 
principles  of  the  private  law.  As  regards  scope  and 
limit  of  powers,  the  general  principles  of  interpretation 
have  been  essentially  the  same  for  both  private  and  pub- 
lic corporations,  although  in  recent  years  a  tendency 
toward  a  more  liberal  construction  of  municipal  pow- 
ers has  made  itself  felt.  The  general  judicial  doctrine 
was  well  expressed  by  Chief  Justice  Shaw,  of  the  Massa- 
chusetts Supreme  Court,  in  the  case  of  Spaulding  vs. 
Lowell:1  "  They  (i.e.,  municipal  and  public  corpora- 
tions) can  exercise  no  powers  but  those  which  are  con- 
ferred upon  them  by  the  act  by  which  they  are  con- 
stituted, or  such  as  are  necessary  to  the  exercise  of 
corporate  powers,  the  performance  of  their  corporate 
duties,  and  the  accomplishment  of  the  purposes  of  their 
association. ' ' 

Judge  Dillon  has  formulated  the  same  principle  in 
his  three  well-known  canons  of  interpretation  which  are 
constantly  cited  by  the  courts.  A  municipal  corpora- 
tion possesses  and  can  exercise  the  following  powers  and 
no  others : 

1.  Those  granted  in  express  words. 

2.  Those  necessarily  or  fairly  implied  in  or  incident 
to  the  powers  expressly  granted. 

3.  Those  essential  to  the  declared  objects  and  pur- 

1  23  Pick,  71  (74).  Cited  by  Dillon,  "Law  of  Municipal  Corpora- 
tions," vol.  i,  pars.  89  and  90. 


LEGAL    POWERS    OF   MUNICIPALITY     143 

poses  of  the  corporation — not  simply  convenient  but 
indispensable.1 

These  strict  rules  of  interpretation  lend  special  sig- 
nificance to  the  system  of  granting  municipal  powers. 
If,  as  in  the  United  States,  the  legislature  undertakes 
to  enumerate  with  great  minuteness  the  powers  to  be 
exercised,  it  is  evident  that  the  cities  must  constantly 
be  petitioning  for  authority  to  meet  new  problems.  The 
European  method  of  granting  municipal  powers  pre- 
sents a  marked  contrast  with  our  own.  There  the  city 
enjoys  the  right  to  exercise  all  powers  not  inconsistent 
with  state  laws.  A  rigid  system  of  administrative  con- 
trol gives  to  the  central  government  all  necessary  au- 
thority to  maintain  harmony  between  state  and  local 
interests. 

The  exercise  of  municipal  powers  in  the  United 
States  involves  two  fundamental  legal  questions: 

1.  The   interpretation   of  the   express   and   implied 
powers  of  the  municipality. 

2.  The  legal  and  constitutional  limitations  to  which 
their  exercise  is  subject. 

The  courts  have  shown  themselves  extremely  reluc- 
tant to  recognize  anything  but  the  expressly  granted 
powers,  although  they  have  admitted  from  the  earliest 
cases  that  municipalities  may  exercise  all  the  powers 
"  within  the  fair  intent  and  purpose  of  their  creation, 
and  which  are  reasonably  proper  to  give  effect  to  the 

1  Dillon,  op.  cit.,  vol.  i. 


144     PROBLEMS    OF    CITY    GOVERNMENT 

powers  expressly  granted."  While  adhering  closely  to 
this  general  doctrine,  the  decisions  of  recent  years  give 
evidence  of  a  more  liberal  interpretation  of  the  powers 
incident  to  express  grants.  The  extension  of  municipal 
authority  under  the  police  power  furnishes  the  most 
striking  illustration  of  this  tendency.  Thus  the  courts 
have  held  that  under  the  power  to  make  police  regula- 
tions a  city  may  "  establish  fire  limits,1  prevent  the  erec- 
tion of  wooden  buildings,2  regulate  the  mode  and  re- 
moval of  ashes,3  and  make  any  other  reasonable  regula- 
tions to  prevent  and  extinguish  fires. ' '  *  Carrying  the 
interpretation  one  step  farther,  the  establishment  of  a 
public  water  supply  has  been  placed  under  the  police 
power.5  In  Johnson  vs.  Philadelphia,6  the  levying  of 
a  street-railway  license  tax  of  $30  per  car  was  justified 
as  a  valid  police  regulation.  One  of  the  more  recent 
cases  illustrating  the  same  general  principle  is  City  of 
Crawfordsville  vs.  Braden,7  in  which  the  right  of  a  city 
to  furnish  electricity  for  private  lighting  was  justified 
as  an  exercise  of  the  police  power.  The  court,  in  the 
course  of  its  opinion,  said :  ' '  The  corporation  possessing, 
as  it  does,  the  power  to  generate  and  distribute  through- 

1  Douglass  vs.  the  Commonwealth,  2  Rawle  (Pa.),  262. 
a  Wadleigh  vs.  Oilman,  12  Me.,  403. 
8  Filbey  vs.  Combe,  2  M.  &  W.,  677. 

•  Dillon,  op.  cit.,  vol.  i,  par.  143. 

•  Hale  vs.  Houghton,  8  Mich.,  458. 

•  60  Pa.  St.  445  (1869). 
»  130  Ind.,  149. 


LEGAL    POWERS    OF    MUNICIPALITY     145 

out  its  limits  electricity  for  the  purpose  of  lighting  its 
streets  and  other  public  places,  we  can  see  no  good  reason 
why  it  may  not  also  at  the  same  time  furnish  it  to  its 
inhabitants  to  light  their  residences  and  places  of  busi- 
ness. To  do  so  is,  in  our  opinion,  a  legitimate  exercise 
of  the  police  power  for  the  preservation  of  property  and 
health.  It  is  averred  in  the  complaint  that  the  light 
which  the  city  proposes  to  furnish  for  individual  use 
is  the  incandescent  light.  Here,  again,  is  a  fact  of  which 
we  are  authorized  to  take  judicial  knowledge.  A  light 
thus  produced  is  safer  to  property  and  more  conducive 
to  health  than  the  ordinary  light.  Produced  by  the 
heating  of  a  filament  of  carbon  to  the  point  of  incan- 
descence in  a  vacuum,  there  is  nothing  to  set  property 
on  fire,  or  to  consume  the  oxygen  in  the  surrounding  air, 
and  thus  render  it  less  capable  of  sustaining  life  and  pre- 
serving health." 

Finally,  in  the  case  of  Oren  vs.  Pingree  et  al,1  the 
court,  although  refusing  to  justify  the  municipal  oper- 
ation of  street  railways  as  an  exercise  of  the  police 
power,  said:  "  All  the  things  mentioned  (public  parks, 
waterworks,  lighting  plant,  fire  department,  drains,  and 
sewers)  are  authorized  and  defended  because  it  is  a 
proper  exercise  of  the  police  power.  .  .  .  Nothing  so 
affects  the  health  of  the  community  as  the  character  of 
its  water  supply.  Drains  and  sewers  and  parks  are  all 

1  Attorney-General  en  rel.  Barbour  vs.  Pingree,  120  Michigan  Re- 
ports, 550  (1889). 


146     PROBLEMS    OF   CITY    GOVERNMENT 

needed  in  the  interest  of  public  health.    Lighted  streets 
tend  to  the  prevention  of  crime." 

The  mode  of  exercise  of  corporate  powers  brings  up 
the  question  of  the  ordinance-making  authority  of  the 
municipality,  and  the  legal  and  constitutional  limitations 
to  which  such  power  is  subject.  Under  the  term  "  ordi- 
nance ' '  is  included  all ' '  acts  or  regulations  in  the  nature 
of  local  laws,  passed  by  the  proper  assembly  or  gov- 
erning body  of  the  corporation. ' ' *  Such  rules  occupy 
a  position  distinctly  inferior  to  state  laws.  In  case  of 
conflict,  the  local  ordinance  must  give  way.  Further- 
more, the  courts  will  not  hesitate  to  inquire  into  the 
motives  which  may  govern  the  city  council  in  the  enact- 
ment of  an  ordinance.  Thus,  in  State  vs.  Cincinnati 
Gas  Company  2  the  question  arose  whether  the  city  coun- 
cil of  Cincinnati  could  use  the  power  of  determining  the 
'price  of  gas — a  power  granted  to  it  by  state  law — for 
the  purpose  of  driving  the  company  to  a  sale  of  its 
plant  and  franchises.  The  court,  in  maintaining  its 
right  to  inquire  into  the  motives  of  the  council,  said: 
"It  is  clear  that  a  city  council  is  to  be  distinguished 
in  many  respects  from  the  law-making  power  of  a  sov- 
ereign state.  .  .  .  The  ordinance  under  consideration  is 
not  one  of  a  general  character,  but  operates  on  the 
defendant  alone,  and  was  passed  under  the  special  au- 

1  Dillon,  op.  cit.,  vol.  i,  par.  307. 

2 18  Ohio  State,  262  (1868),  cited  by  Dillon,  op.  cit.,  vol.  i,  par. 
312. 


LEGAL    POWERS    OF   MUNICIPALITY     147 

thority  of  the  Act  of  1853.  The  intention  of  the  legis- 
lature in  the  thirtieth  section  of  that  act  was  to  require 
incorporated  gas  companies,  over  whose  charters  it  had 
the  power  of  absolute  control,  to  dispose  of  the  gas 
which  they  might  furnish  for  public  or  private  use 
at  fair  and  reasonable  prices.  .  .  .  The  discretionary 
power  given  by  the  act  to  city  councils  might  have  been 
vested  elsewhere,  but  wherever  vested,  the  gas  com- 
panies, whose  property  interests  are  so  vitally  affected 
by  it,  have  a  right  to  demand  that  it  shall  be  honestly 
exercised  for  the  purposes  for  which  it  was  given.  .  .  . 
Both  public  and  private  rights  are  to  be  protected,  and 
for  that  purpose  we  must  recognize  the  fact  that  a  mu- 
nicipal as  well  as  a  private  corporation  can  do  wrong." 
Where  a  specific  duty  has  been  placed  upon  the 
municipality,  the  court  will  go  so  far  as  to  mandamus 
the  city  council  to  pass  the  resolutions  or  ordinances 
necessary  to  meet  the  statutory  obligations.  In  the  case 
of  The  People  vs.  Guggenheimer,  the  Supreme  Court  of 
New  York  issued  a  mandamus  to  the  members  of  the 
Council  of  the  City  of  New  York  to  vote  the  issue  of 
$570,000  of  bonds  to  pay  for  the  franchise  and  plant 
of  the  Long  Island  Water  Company.  The  State  Legis- 
lature had  authorized  l  the  purchase  of  the  works,  and 
directed  the  proper  officers  of  the  city  to  issue  water 
bonds  in  payment  therefor.  The  lower  branch  of  the 
municipal  assembly  refused  to  authorize  the  issue.  In 

1  Chap.  481,  Laws  of  1892,  amended  by  Chap.  669,  Laws  of  1893. 


148     PROBLEMS    OF    CITY    GOVERNMENT 

ordering  the  recalcitrant  members  of  the  council  to  issue 
these  bonds  the  court  said: 

"  The  council  is  an  inferior  body,  unlike  the  state 
legislature,  which  represents  the  sovereignty  of  the 
state,  and  is  the  mere  creature  of  the  legislative  will, 
with  power  to  pass  by-laws  in  the  form  of  ordinances 
and  the  like,  and  is  not  exempt  from  judicial  supervision 
and  control. 

'  The  main  distinction  between  public  and  private 
corporations  is  that  over  the  former  the  legislature,  as 
the  trustee  or  guardian  of  the  public  interest,  has  the 
exclusive  and  unrestrained  control;  and  acting  as  such 
it  may  create,  or  it  may  modify  or  destroy,  as  public 
exigency  requires  or  recommends,  or  the  public  interest 
will  be  best  subserved.  The  right  to  establish,  alter,  or 
abolish  such  corporations  seems  to  be  a  principle  inher- 
ent in  the  very  nature  of  the  institutions  themselves; 
since  all  mere  municipal  regulations  must,  from  the 
nature  of  things,  be  subject  to  the  absolute  control  of 
the  government.  ...  If  the  respondents  had  been  given 
a  discretion  in  the  matter,  the  power  of  the  court  would 
be  limited  to  compelling  them  to  exercise  their  discre- 
tion, and  could  not  direct  them  to  vote  for  or  against 
the  measure.  But  where  the  duty  is  mandatory,  and  no 
discretion  is  vested,  its  performance  and  manner  of 
performance  may  be  compelled  by  mandamus." 

Municipal  ordinances  must  conform  to  certain  stand- 
ards, the  most  important  of  which  are  as  follows: 


1.  Ordinances  must  be  reasonable.1 

A  case  decided  by  the  Supreme  Court  of  Michigan  2 
in  1886  furnishes  a  striking  instance  of  the  readiness 
of  the  courts  to  declare  oppressive  ordinances  void,  par- 
ticularly if  they  be  passed  in  pursuance  of  the  general 
police  power  of  the  municipality.  A  man  named  Frazee 
was  arrested  under  an  ordinance  of  the  city  of  Grand 
Rapids  intended  to  put  a  stop  to  the  demonstrations  of 
the  Salvation  Army.  ' '  The  ordinance  is  unreasonable, ' ' 
said  the  court,  ' '  because  it  suppresses  what  is  in  general 
perfectly  lawful,  and  because  it  leaves  the  power  of  per- 
mitting or  restraining  processions  to  an  unregulated 
official  discretion,  when  the  whole  matter,  if  regulated 
at  all,  must  be  by  permanent  legal  provisions,  operating 
generally  and  impartially." 

Another  excellent  illustration  of  the  same  principle 
is  the  case  of  Commissioners  of  Northern  Liberties  vs. 
Gas  Company.3  The  Board  of  Commissioners  of  North- 
ern Liberties  had  been  intrusted  with  the  general  super- 
vision of  the  highways  of  the  city.  In  pursuance  of  this 
power  an  ordinance  was  passed  prohibiting  the  North- 
ern Liberties  Gas  Company  from  opening  a  paved  street 
for  the  purpose  of  laying  pipes  from  the  main  to  the 
opposite  side  of  the  street.  In  declaring  this  regulation 
to  be  unreasonable,  and  therefore  void,  the  court  said: 
"  The  effect  of  the  ordinance  is  to  compel  the  company 

1  Dillon,  op.  cit.,  vol.  i,  par.  319.     *  63  Mich.,  396  (1886). 
»  12  Pa.  St.,  318  (1859).     Dillon,  op.  cit.,  vol.  i,  par.  320. 
11 


150     PROBLEMS   OF   CITY    GOVERNMENT 

to  construct  two  mains,  one  on  each  side  of  the  street, 
instead  of  one,  thereby  materially  increasing  the  ex- 
pense to  the  company,  and  consequently  enhancing  the 
price  of  the  gas  to  the  inhabitants  of  the  district.  This, 
we  think,  an  unreasonable  exercise  of  authority,  and 
consequently  not  within  the  power  of  the  board.  A 
by-law  must  be  reasonable  and  for  the  common  benefit; 
it  must  not  be  in  restraint  of  trade,  nor  ought  it  to 
impose  a  burden  without  an  apparent  benefit." 

The  case  of  Red  Star  Steamship  Company  vs.  Jersey 
City  a  is  an  instance  of  the  length  to  which  the  courts  will 
go  in  their  examination  of  the  reasonableness  of  an  ordi- 
nance. The  Board  of  Public  Works  of  Jersey  City  was 
empowered  to  regulate  the  use  and  distribution  of  water, 
and  to  fix  the  cost  to  the  consumer.  In  the  exercise  of 
this  power  the  board  passed  a  resolution  that  "  all  par- 
ties using  metered  waters  be  charged  the  full  value  of 
the  meter  in  use."  While  there  was  no  question  in  the 
mind  of  the  court  as  to  the  power  of  the  board  to  pre- 
scribe the  use  of  meters,  it  denied  the  right  of  the  city 
to  impose  the  cost  of  these  expensive  devices  upon  the 
consumer.  It  held  that  the  only  duty  of  the  consumer 
spoken  of  in  the  charter  is  the  payment  of  rent  for  the 
use  of  the  water,  and  the  city  may  not,  therefore,  with- 
out the  consent  of  the  consumer,  supply  fixtures  for  the 
distribution  or  use  of  water  and  charge  him  with  the 
cost.  It  is  important  to  note,  however,  that  the  courts 

>  45  N.  J.  Law  (16  Vroom),  246. 


will  usually  refuse  to  inquire  into  the  reasonableness  of 
a  city  ordinance,  if  the  power  under  which  the  ordi- 
nance has  been  passed  is  one  which  is  expressly  dele- 
gated and  carefully  defined.  The  examination  of  the 
reasonableness  of  an  ordinance  is  usually  restricted  to 
those  passed  under  powers  "  expressed  in  terms  general 
and  indefinite. ' ' * 

2.  Ordinances  must  not  be  oppressive.2 
In  Mayor  vs.  Winfield  3  the  court  was  called  upon 
to  determine  the  validity  of  an  ordinance  of  the  city 
of  Memphis,  instructing  the  watchman  to  arrest  all  free 
negroes  who  might  be  found  out  after  ten  o  'clock  within 
the  limits  of  the  city  and  lodge  them  in  the  calaboose, 
there  to  remain  until  next  morning;  and  that  all  free 
negroes  so  offending  should  be  fined  $10  for  the  use  of 
the  corporation.  In  deciding  against  the  validity  of  the 
ordinance,  on  the  ground  of  its  oppressive  character, 
the  court  said:  "  It  is  an  attempt  to  impair  the  liberty 
of  a  free  person  unnecessarily,  to  restrain  him  from  the 
exercise  of  his  lawful  pursuits,  to  make  an  innocent  act 
a  crime,  and  to  exact  a  penalty  therefor  both  by  fine 
and  imprisonment  without  trial  before  any  tribunal. 
.  .  .  We  think  this  ordinance  is  both  unnecessary  and 
oppressive." 

Again,  in  Baltimore  vs.  Radecke4  an  ordinance  of 
the  city  of  Baltimore  giving  to  the  mayor  the  power  to 

'  50  N.  J.  Law,  55  (1887).         *  8  Humph.  (Tenn.),  707  (1848). 
»  Dillon,  op  cit.,  par.  321.         «  49  Md.,  217. 


152   PROBLEMS  OF  CITY  GOVERNMENT 

revoke  permits  for  steam  engines  and  boilers  was  de- 
clared void  because  it  clothed  a  single  individual  with 
uncontrolled  and  arbitrary  power.  "  It  commits  to  the 
unrestrained  will  of  a  single  public  officer  the  power  to 
notify  every  person  who  now  employs  a  steam  engine 
in  the  prosecution  of  any  business  in  the  city  of  Balti- 
more to  cease  to  do  so,  and  by  providing  compulsory 
fines  for  every  day's  disobedience  of  such  notice  and 
order  of  removal  renders  his  power  over  the  use  of  steam 
in  that  city  practically  absolute,  so  that  he  may  prohibit 
its  use  altogether.  But  if  he  should  not  choose  to  do 
this,  but  only  to  act  in  particular  cases,  there  is  noth- 
ing in  the  ordinance  to  guide  or  control  his  action. 
It  lays  down  no  rules  by  which  its  impartial  execu- 
tion can  be  secured  or  partiality  and  oppression  pre- 
vented. ' ' 

3.  Ordinances  must  not  make  special  and  unwar- 
ranted discrimination.1 

They  must  be  fair,  impartial,  and  general. 

This  rule  is  well  illustrated  in  the  case  of  New 
Orleans  vs.  Blineau.2  By  resolution  of  the  municipal 
council,  approved  by  the  mayor,  the  Blineau  soap  fac- 
tory was  directed  to  be  removed  within  twenty  days 
unless  put  into  such  condition  as  not  to  be  a  nuisance. 
Failure  to  comply  with  the  resolution  carried  with  it  a 
fine  of  $50  for  every  infraction  in  case  complaint  should 

1  Dillon,  op.  cit.,  vol.  i,  par.  322. 

2  3  La.  Annual  Reports,  688  (1848). 


LEGAL    POWERS    OF    MUNICIPALITY     153 

be  made  within  a  certain  period  by  three  inhabitants 
under  oath.  The  court,  in  declaring  the  ordinance  void, 
said :  ' '  An  ordinance  imposing  a  fine  is  in  every  sense  a 
penal  enactment,  and  by  its  essence  must  be  general  in 
its  operation.  ...  To  designate  one  individual  or  one 
establishment,  and  subject  its  owners  to  punishment,  ap- 
pears to  us  to  be  entirely  inadmissible  and  contrary  to 
common  right.  ...  It  has  more  resemblance  to  an  im- 
perial rescript  than  a  rule  for  the  conduct  of  citizens 
under  a  government  of  laws,  exacted  by  a  body  possess- 
ing mere  powers  of  administration." 

4.  While  ordinances  may  regulate,  they  may  not  re- 
strain trade. 

This  rule  involves  the  important  question  of  the 
power  of  the  municipality  to  grant  exclusive  privileges 
and  to  create  monopolies.  It  is  evident  that  the  general 
police  power  of  the  city  gives  it  far-reaching  powers  of 
control  and  supervision  over  those  trades  and  occupa- 
tions which  involve  danger  to  the  public  health  and 
safety.  The  extent  of  the  power  depends  upon  the  na- 
ture of  the  trade  or  occupation.  It  is  important  in 
the  first  place  to  distinguish  between  those  occupations 
which  are  inherently  dangerous  to  the  public  health  or 
morals,  such  as  gambling,  prostitution,  etc.,  and  such 
as  are  lawful  and  useful  under  ordinary  circumstances. 
The  former  may  be  prohibited,  the  latter  regulated. 

The  power  to  prohibit  the  former  class  is  closely  con- 
nected with  the  power  to  suppress  nuisances,  which  is 


154      PROBLEMS    OF    CITY    GOVERNMENT 

usually  conferred  in  express  terms,  or  if  not,  is  con- 
strued as  part  of  the  general  police  power  of  the  munic- 
ipality. The  limit  which  the  courts  have  set  to  the 
exercise  of  this  authority  is  well  illustrated  in  the  case 
of  Yates  vs.  Milwaukee,1  where  the  question  arose 
whether  the  city  of  Milwaukee,  acting  under  the  author- 
ity of  a  state  law  "  to  establish  dock  and  wharf  lines 
upon  the  banks  of  the  Milwaukee  River,  etc.,"  could  fix 
such  lines  wherever  it  deemed  fit,  and  order  the  removal 
of  a  wharf,  which  in  no  way  interfered  with  navigation, 
as  a  public  nuisance.  In  declaring  the  ordinance  void, 
the  court  said :  ' '  The  mere  declaration  by  the  city  coun- 
cil of  Milwaukee  that  a  certain  structure  was  an  en- 
croachment or  obstruction  did  not  make  it  so,  nor  could 
such  declaration  make  it  a  nuisance  unless  it  in  fact 
had  that  character." 

In  the  recent  case  of  Grossman  vs.  City  of  Oakland  2 
the  doctrine  was  carried  one  step  farther.  The  charter 
of  the  city  gave  it  power  "  to  prevent  and  restrain  nui- 
sances, and  to  declare  what  shall  constitute  a  nuisance." 
Acting  under  this  power,  the  city  prohibited  any  rail- 
road company  from  fencing  its  track  in  the  plotted  por- 
tions of  the  city,  and  declared  such  fence  to  be  a  nui- 
sance. In  spite  of  the  express  power  "  to  declare  what 
shall  constitute  a  nuisance,"  the  court  held  this  ordi- 
nance void  on  the  ground  that  the  city  cannot  arbitrarily 
declare  any  particular  thing  a  nuisance  which  has  not 

'  10  Wallace,  497  (1870).  »  30  Oregon,  478  (1895). 


LEGAL    POWERS    OF    MUNICIPALITY     155 

heretofore  been  so  declared  by  law  or  judicially  deter- 
mined to  be  such.  "  An  ordinance  of  the  city  cannot 
transform  into  a  nuisance  an  act  or  thing  not  treated 
as  such  by  statutory  or  common  law." 

The  courts  have,  furthermore,  attempted  to  discour- 
age the  more  stringent  remedies  for  the  suppression  of 
nuisances.  Thus,  in  prohibiting  an  offensive  trade,  the 
courts  will  not  permit  the  city  to  order  the  destruction 
of  the  building.  The  regulation  cannot  go  beyond  the 
particular  purpose  to  be  attained.  The  Supreme  Court 
of  Pennsylvania  1  refused  to  issue  an  injunction  to  re- 
strain the  erection  of  a  bone-boiling  establishment, 
although  it  recognized  the  fact  that  the  industry  is  a 
public  nuisance,  which  the  public  authority  may  sup- 
press if  established  in  the  midst  of  a  densely  populated 
area.  The  erection  of  the  buildings,  however,  cannot 
be  regarded  as  a  nuisance. 

The  power  to  regulate  as  distinct  from  the  power  to 
prohibit  covers  a  far  larger  number  of  subjects.  There 
is  probably  no  occupation  which  in  some  form  or  other 
does  not  come  under  one  or  more  of  the  regulations 
prescribed  by  the  municipality  for  the  carrying  on  of 
industrial  pursuits.  Certain  classes  of  industries,  how- 
ever, because  of  their  peculiar  relations  to  the  public  or 
because  of  other  special  circumstances  under  which  they 
are  pursued,  are  subject  to  particularly  rigid  super- 
vision and  inspection.  Thus  ordinances  regulating 

*  Czarniecki's  Appeal,  11  Atlantic  Reporter,  660  (1887). 


156      PROBLEMS    OF    CITY    GOVERNMENT 

markets  and  providing  for  the  inspection  of  food  prod- 
ucts of  all  kinds  come  within  the  general  police  power 
of  the  municipality.  In  fact,  under  a  specific  grant  of 
authority  from  the  state  legislature,  the  city  may  make 
the  carrying  on  of  certain  trades  dependent  upon  the 
procuring  of  a  license.  Every  extension  of  the  license 
principle  must  be  justified  by  paramount  considerations 
of  the  public  health  and  safety ;  otherwise  the  regulation 
will  be  void,  because  it  may  act  in  restraint  of  trade. 
Milk  dealers,  butchers,  peddlers,  pawnbrokers,  and 
liquor  dealers  may  be  required  to  take  out  a  license.  It 
is  important  to  distinguish,  however,  between  the  use  of 
the  licensing  power  as  a  means  of  police  regulation  and 
the  use  of  the  same  power  as  a  means  of  raising  revenue. 
To  come  within  the  police  power,  the  license  fee  should 
not  exceed  an  amount  necessary  to  reimburse  the  city 
for  the  expense  incurred  in  inspecting  and  controlling 
the  business.  Thus  in:  Mankato  vs.  Fowler,1  the  Supreme 
Court  of  Minnesota  declared  that  where  the  plain  intent 
of  the  charter  provision  granting  the  power  to  license 
auctioneers  is  to  control  and  regulate  the  business  rather 
than  to  tax  it,  a  fee  of  $200  per  annum  is  ' '  unreasonable 
as  a  regulation  and  unauthorized  as  a  tax."  The  high 
license  fees  exacted  from  liquor  dealers  should  in  reality 
be  regarded  as  coming  within  the  power  of  taxation 
justified  by  the  peculiar  relation  of  the  business  to  the 
public  morals. 

1  32  Minn.,  364. 


LEGAL    POWERS    OF    MUNICIPALITY     157 

As  a  rule,  the  conditions  under  which  liquor  licenses 
may  be  granted  are  prescribed  in  the  general  state  law 
dealing  with  the  subject.  Where,  in  the  absence  of  a 
state  enactment,  the  city  charter  gives  to  the  local  au- 
thorities power  to  regulate  and  license  liquor  dealers, 
the  courts  will  permit  the  levying  of  fees  to  almost  any 
amount.  Thus  in  Perdue  vs.  Ellis,1  a  license  fee  of  $500, 
and  in  Marion  vs.  Chandler,2  a  fee  of  $1,000  were  held 
to  be  within  the  competence  of  the  city  authorities. 

The  most  important  question  involved  in  this  discus- 
sion is  the  power  of  municipal  authorities  over  those 
industries,  such  as  street  railways,  gas  works,  etc.,  which, 
because  of  their  very  nature,  require  the  granting  of 
special  privileges,  such  as  rights  of  way  above,  over,  or 
under  the  public  highways. 

The  subject  is  one  fraught  with  very  great  difficul- 
ties, owing  to  the  lack  of  harmony  in  the  decisions  of 
the  courts.  It  is  necessary  in  the  first  place  to  distin- 
guish between  a  monopoly  and  an  exclusive  privilege. 
A  monopoly  is  a  privilege  in  derogation  of  common 
right,  and  involves  the  exclusion  from  a  particular  pur- 
suit of  those  entitled  under  ordinary  circumstances  to 
engage  in  it.  An  exclusive  privilege,  on  the  other  hand, 
may  relate  to  a  class  of  industries  which  requires  the 
grant  of  special  rights  as  a  condition  prerequisite,  in- 
dustries which  are  not  open  to  the  public  at  large.  The 
construction  of  bridges  and  the  establishment  of  ferries 

1  6  Alabama,  899  (1844).  "  18  Georgia,  586. 


158     PROBLEMS    OF    CITY    GOVERNMENT 

are  instances  of  exclusive  privileges  which  recur  most 
frequently  in  the  early  English  common  law.  They  were 
not  regarded  as  monopolies  opposed  to  public  policy. 
In  every  such  instance  the  public  is  supposed  to  have  a 
direct  interest  in  the  service  which  gives  it  a  quasi-public 
character.  The  offering  of  a  service  of  a  public  nature 
is  construed  as  a  sufficient  consideration  for  the  exclu- 
sive privilege  granted. 

When  the  state  constitution  contains  no  specific  pro- 
vision to  the  contrary,  there  is  no  doubt  as  to  the  power 
of  the  state  legislature  to  grant  exclusive  privileges  to 
individuals  or  corporations,  provided  always  that  con- 
siderations of  public  good  and  public  service  can  be 
shown  to  exist.  In  the  class  of  industries  above  referred 
to,  the  grant  of  exclusive  privileges  does  not  deprive 
others  of  preexisting  rights,  and  does  not  therefore  vio- 
late the  provision  of  the  Federal  Constitution  that  "  No 
state  shall  deprive  any  person  of  life,  liberty,  or  prop- 
erty without  due  process  of  law. ' ' 

The  authority  of  municipalities  to  grant  exclusive 
privileges  is  subject  to  very  definite  limitations.  Unless 
expressly  delegated  by  the  state  legislature,  the  courts 
hold  that  it  does  not  exist.  As  was  said  in  Long  vs. 
Duluth  i1  "  The  authority  conferred  upon  such  govern- 
mental agencies  of  the  state  (viz.,  cities)  to  grant  exclu- 
sive franchises  or  privileges  must  be  as  explicit  and  free 
from  doubt  as  would  be  required  if  the  franchise  were 

1  49  Minn.,  280. 


LEGAL    POWERS    OF    MUNICIPALITY     159 

created  directly  by  the  legislature."  And,  again,  in 
Jackson  County  Horse  Railroad  Company  vs.  Interstate 
Rapid  Transit  Railway  Company,1  Justice  Brewer,  in 
passing  on  the  contention  that  the  general  control  of 
the  streets  vested  in  the  municipality  of  Kansas  City 
gave  it  the  power  to  grant  exclusive  street-railway  privi- 
leges, said:  "  Let  me  in  the  outset  formulate  two  or 
three  unquestioned  propositions:  (1)  The  legislature  has, 
as  the  general  representative  of  the  public,  the  power, 
subject  to  specific  constitutional  limitations,  to  grant 
special  privileges;  (2)  It  may,  with  similar  limita- 
tions, grant  the  like  power  to  municipal  corporations  as 
to  all  matters  of  a  purely  municipal  nature;  but,  (3) 
As  the  possession  by  one  individual  of  a  privilege  not 
open  to  acquisition  by  others  apparently  conflicts  with 
that  equality  of  rights  which  is  the  underlying  princi- 
ple of  social  organization  and  popular  government,  he 
who  claims  such  exclusive  privilege  must  show  not  only 
clear  warrant  of  title,  but  also  probable  corresponding 
benefit  to  the  public.  .  .  .  The  legislature  has  not  in 
terms  given  the  city  the  power  of  granting  an  exclusive 
privilege  of  occupying  the  streets  with  railroads;  it  has 
not  in  terms  given  to  it  the  right  to  contract  away  its  con- 
tinuous control  of  the  streets.  ...  It  is  doubtless  true, 
as  counsel  says,  that  capital  is  timid,  and  will  not  under- 
take such  enterprises  without  abundant  guaranties  and 
undoubted  security.  But  this  suggests  matters  of  policy, 

1  24  Federal  Reports,  306  (1885). 


160      PROBLEMS    OF    CITY    GOVERNMENT 

and  presents  considerations  for  the  legislature.  It  does 
not  aid  in  determining  what  powers  have  been  granted, 
or  in  the  construction  of  charters  or  ordinances.  When 
the  legislature  deems  that  the  public  interests  require 
that  cities  should  be  invested  with  power  to  grant  ex- 
clusive privileges,  it  will  say  so  in  unmistakable  terms, 
as  it  already  has  in  some  instances.  Till  then  the  courts 
must  deny  the  possession  of  such  power." 

The  strict  construction  of  all  grants  of  privileges  in 
favor  of  the  public  has  led  the  courts  to  deny  an  exclu- 
sive character  to  franchise  grants  unless  they  are  spe- 
cifically so  declared.  Where,  however,  the  city  has  been 
given  power  to  grant  exclusive  privileges,  the  grant 
of  such  privileges  constitutes  a  contract  between  the 
city  and  the  grantee,  and  will  prevent  the  granting  of 
similar  privileges  to  another  company.  All  such  grants 
enjoy  the  protection  of  Article  I,  Section  10,  of  the 
Federal  Constitution,  that  "  No  state  shall  pass  any  law 
impairing  the  obligation  of  contracts."  It  will  not, 
however,  debar  the  city  from  entering  upon  the  conduct 
of  similar  enterprises,  although  as  to  this  point  there 
has  been  some  difference  of  judicial  opinion. 

The  Pennsylvania  courts,  for  instance,  have  wavered 
between  two  opposing  doctrines.  In  the  Lehigh  Water 
Company's  appeal,1  the  Supreme  Court  adopted  the  gen- 
eral rule  that  a  franchise  grant  to  a  water  company, 
which  stated  that  "  no  other  company  shall  be  incor- 

»  102  Pa.,  515  (1883). 


LEGAL    POWERS    OF    MUNICIPALITY     161 

porated  for  that  purpose  until  the  said  corporation  shall 
have  from  its  earnings  realized  and  divided  among  its 
stockholders  during  five  jrears  a  dividend  equal  to  eight 
per  centum  per  annum  upon  its  capital  stock, ' '  was  exclu- 
sive only  as  against  other  water  companies,  and  did  not 
preclude  the  municipality  from  erecting  a  water  plant  of 
its  own.  Although  the  value  of  the  company's  franchise 
may  thereby  be  impaired,  they  have  no  legal  cause  for 
complaint.  In  this-  case  the  court  treated  the  water  com- 
pany and  the  municipality  as  creatures  of  the  state  leg- 
islature. "  No  contract  has  been  shown  between  the 
water  company  and  the  state,"  said  the  court,  "  by 
which  the  latter  is  precluded  from  granting  to  the  bor- 
ough of  Easton  the  privilege  of  erecting  works  to  supply 
its  citizens  with  water. ' '  The  same  rule  was  followed  in 
Howard's  appeal.1  In  White  vs.  Meadville,2  the  court 
reversed  the  decision  in  the  Howard  case,  and  held  that 
"  a  municipality  has  no  power  to  erect  works  for  the 
supply  of  water  except  by  virtue  of  a  legislative  grant, 
and  where  by  virtue  of  such  a  grant  it  enters  into  a  con- 
tract for  the  supply  thereof  by  another  person,  it  is  bound 
by  its  contract  and  the  terms  of  the  law  authorizing  it, 
the  same  as  would  be  a  private  individual. ' '  In  this  case 
the  court  had  before  it  two  acts  of  the  legislature,  one 
authorizing  water  companies  to  introduce  water  into 
cities  and  boroughs;  the  other  authorizing  cities  to  con- 
struct their  own  plants  for  the  supply  of  water  or  to 

'  162  Pa.,  374  (1894).  *  177  Pa.,  643  (1895). 


162      PROBLEMS    OF   CITY   GOVERNMENT 

make  contracts  with  any  person,  company,  or  associa- 
tion to  supply  the  same.  The  evident  determination  of 
the  court  to  protect  the  water  companies  led  it  to  the 
conclusion  that  a  city  may  either  erect  its  own  works 
or  make  a  contract  for  the  supply  of  water,  but  having 
once  adopted  the  latter  plan,  it  cannot  proceed  to  erect 
its  own  works,  and  thereby  destroy  the  value  of  the 
water  company's  plant.  The  only  course  open  to  the 
city  in  case  it  desires  to  furnish  water  is  to  purchase  the 
plant  of  the  company.  In  Metzger  vs.  Beaver  Falls,1 
the  court  held  that  where  the  city  had  entered  into  a 
contract  with  a  private  company  for  the  supply  of 
water,  it  was  debarred  from  constructing  a  plant  until 
the  expiration  of  the  franchise  period  fixed  by  the  state 
law. 

It  is  evident  that  while  this  interpretation  tends  to 
safeguard  private  rights,  it  seriously  hampers  the  mu- 
nicipality in  dealing  with  public-service  corporations;  in 
fact,  practically  makes  the  latter  the  masters  of  the 
situation.  Fortunately,  the  views  of  the  Pennsylvania 
courts  have  not  as  yet  received  general  acceptance  in 
other  states. 

From  the  discussion  up  to  the  present  point  it  is 
evident  that  in  granting  franchises,  whether  exclusive 
or  otherwise,  the  discretionary  power  of  the  city  is  lim- 
ited by  the  contractual  obligations  arising  from  such 
grants.  The  general  rule  of  interpretation  is  that  with 

'  178  Pa.,  1  (1896). 


LEGAL    POWERS    OF   MUNICIPALITY     163 

the  exception  of  powers  expressly  reserved  and  subject 
always  to  the  exercise  of  the  general  police  power  of 
the  municipality,  the  local  authorities  can  do  nothing 
that  will  in  any  way  diminish  the  value  of  a  franchise 
privilege.  It  is  also  a  settled  doctrine  of  law  that  no 
governmental  agency  can  divest  itself  of  its  power  to 
protect  the  health,  comfort,  and  welfare  of  the  com- 
munity ; 1  but  the  city  cannot,  ' '  under  pretense  of  reg- 
ulation, take  from  a  corporation  any  of  the  essential 
rights  and  privileges  which  the  charter  confers.  The*y 
must  be  police  regulations  in  fact,  and  not  amendments 
in  curtailment  of  the  corporate  franchise."  The  most 
interesting  cases  illustrating  the  exercise  of  this  power 
are  to  be  found  in  ordinances  regulating  the  street-rail- 
way traffic.  In  most  American  cities  the  general  police 
power  of  the  municipality  is  reenforced  by  an  express 
grant  of  power  to  make  ordinances  regulating  the  con- 
struction and  operation  of  street  railways.  In  the  exer- 
cise of  this  power  of  control  a  city  may  regulate  the 
speed  of  cars,2  require  cars  to  stop  at  designated  places,3 
prescribe  that  the  tracks  be  watered  by  the  company,4 
prohibit  smoking  on  the  cars.5 

1  New  Orleans  City  and  Lake  R.R.  Co.  vs.  New  Orleans,  11  So. 
Rep.,  77. 

2  Hanlon  vs.   South    Boston  Horse  R.R.  Co.,    129  Mass.,  310 
(1880). 

3  No.  Birmingham  St.  Ry.  Co.  vs.  Calderwood.,  7  So.  Rep.,  360 
(1890). 

4  City  &  Suburban  Rwy.  Co.  vs.  Savannah.,  77  Ga.,  731  (1886). 

5  Louisiana  vs.  Heidenlain.,  42  La.  Ann.,  483  (1890). 


The  power  of  the  municipality  in  the  absence  of 
an  express  reservation  in  the  charter  to  fix  the  rates  of 
fare  to  be  charged  by  street-railway  companies  has  not 
been  definitely  passed  upon  by  the  courts.  It  seems 
hardly  likely  that  the  courts  will  extend  the  doctrine 
of  Munn  vs.  Illinois  to  municipal  corporations,  but 
will  rather  follow  the  rule  that  in  a  matter  of  this 
kind  the  right  must  either  be  expressly  reserved  by 
the  municipality  in  the  franchise  grant  or  it  must  re- 
ceive specific  authorization  from  the  legislature,  which 
authorization  must  be  anterior  to  the  making  of  the 
grant. 

Where  the  authority  to  fix  fares  has  been  expressly 
reserved,  it  must  be  exercised  in  a  reasonable  manner, 
and  not  confiscate  the  property  of  the  company  under 
cover  of  such  regulation.  The  case  of  Milwaukee  Elec- 
tric Light  and  Transportation  Company  vs.  Milwaukee  x 
illustrates  the  principle  here  involved.  An  ordinance 
of  the  city  attempted  to  compel  the  company  to  sell 
six  tickets  for  twenty-five  cents  and  twenty-five  for 
a  dollar,  which  would  have  involved  a  reduction  of 
nearly  twenty  per  cent  from  the  prevailing  five-cent 
fare.  In  declaring  the  regulation  repugnant  to  the 
Fourteenth  Amendment — which  forbids  a  state  from 
depriving  any  person  of  life,  liberty,  or  property  with- 
out due  process  of  law — the  court  said  :  ' '  The  improved 

1  Michie's  ''Municipal  Corporation  Cases,"  vol.  i,  p.  442.  95 
Wis.,  39. 


LEGAL    POWERS    OF    MUNICIPALITY     165 

service  received  by  the  public,  with  the  universal  sys- 
tem of  transfers,  is  well  worth  the  five-cent  rate  charged 
therefor.  The  company  has  not  received  earnings  in 
excess  of  an  equitable  allowance  to  the  investors  for 
the  means  necessarily  invested  in  furnishing  such  serv- 
ice. Enforcement  of  the  ordinance  would  deprive  com- 
plainants of  property  rights  by  preventing  reasonable 
compensation  for  its  service." 

The  restrictions  on  municipal  powers  considered  in 
this  chapter  result  from  two  causes:  (1)  From  the 
fact  that  the  city  is  a  subordinate  governmental 
agency,  the  creature  of  the  state,  and  dependent  upon 
the  legislature  for  its  authority,  and  (2)  from  the  pro- 
tection of  vested  rights  under  the  state  and  federal 
constitutions. 

The  existence  of  such  limitations  upon  the  authority 
of  the  municipality  makes  it  all  the  more  necessary  to 
exercise  the  greatest  care  and  foresight  in  the  granting 
of  franchises.  The  mistake  of  one  generation  is  per- 
petuated, and  often  carries  with  it  serious  and  irrepa- 
rable financial  consequences.  It  is  far  more  difficult  to 
correct  mistakes  of  legislative  or  administrative  policy 
under  our  constitutional  system  than  it  is  in  Europe. 
The  constitutional  safeguards  to  vested  rights,  and  the 
broad  interpretation  of  such  rights,  place  the  local 
authorities  in  a  position  of  trusteeship  not  only  for 
the  present  generation,  but  also  for  the  generations  to 

come. 

12 


166     PROBLEMS   OF   CITY   GOVERNMENT 

REFERENCES 

"American  and  English  Annotated  Cases."  Northport,  L.  I.: 
Thompson,  1906. 

DILLON,  J.  F.  "Commentaries  on  the  Law  of  Municipal  Cor- 
porations." Boston:  Little,  Brown,  1890. 

McQuiLLEN,  E.  "  Treatise  on  the  Law  of  Municipal  Ordinances. " 
Chicago:  Callaghan,  1904. 

SMITH,  J.  W.  "Commentaries  on  the  Modern  Law  of  Municipal 
Corporations."  Indianapolis:  Bowen-Merrill,  1903. 


CHAPTER    VIII 

THE   ORGANIZATION   OF   THE   MODERN   MUNICIPALITY 

IN  all  matters  affecting  form  of  government,  the 
American  people  enjoy  a  reputation  for  conservatism 
which  lacks  real  justification  when  examined  in  the 
light  of  municipal  development  during  the  last  twenty 
years.  In  fact,  the  readiness  with  which  we  have  ac- 
cepted sudden  and  almost  revolutionary  changes  in 
municipal  organization  might  lead  the  casual  observer 
to  conclude  that  political  radicalism  finds  its  most  con- 
genial atmosphere  in  the  United  States.  This  condition 
of  political  unrest  with  its  resulting  instability  is  trace- 
able to  a  lack  of  adjustment  between  the  form  of  munici- 
pal government  and  the  functions  which  the  city  is 
called  upon  to  perform. 

The  apparent  willingness  to  make  frequent  and  radi- 
cal changes  in  municipal  organization  is  strengthened 
by  the  abiding  "  faith  in  mechanism,"  which,  as  was 
stated  in  a  previous  chapter,  is  one  of  the  leading 
traits  of  our  national  character.  It  fosters  the  belief 
that  political  abuses  are  to  be  remedied  by  changes 
in  governmental  organization.  It  is  a  remarkable  fact 
that  while  the  form  of  municipal  government  in  conti- 

167 


nental  Europe  has  remained  almost  unchanged  during 
the  last  century,  the  cities  of  the  United  States  have 
been  passing  through  at  least  three  distinct  stages,  in 
each  of  which  an  essentially  different  form  of  mu- 
nicipal organization  has  prevailed.  Europe  has  been 
endeavoring  to  perfect  the  operation  of  a  given  sys- 
tem, while  in  the  United  States  we  have  been  search- 
ing for  a  form  of  government  so  perfect  in  its  adjust- 
ment as  to  assure  efficiency  without  the  necessity  of 
the  constant  vigilance  and  active  cooperation  of  the 
population. 

The  history  of  municipal  development  in  the  United 
States  may  be  divided  into  three  periods,  in  each  of 
which  the  attempt  has  been  made  to  remedy  adminis- 
trative inefficiency  through  changes  in  governmental 
organization. 

In  the  first  period  we  find  municipal  powers  concen- 
trated in  a  local  elective  assembly,  which  not  only  deter- 
mined the  policy  of  the  municipality,  but  appointed  all 
administrative  officials,  and  in  many  cases  elected  the 
mayor.  For  instance,  in  Philadelphia  the  mayor  was 
for  a  long  time  little  more  than  the  presiding  officer  of 
the  city  council.  It  was  not  until  he  was  elected  directly 
by  the  people  that  the  office  acquired  real  importance  as 
one  of  the  organs  of  the  city  government. 

In  the  second  period  the  powers  of  government  are 
distributed  between  a  popularly  elected  mayor  and  a 
council;  in  the  third,  the  mayor  acquires  a  dominant 


THE    MODERN    MUNICIPALITY  169 

position,  while  the  elective  council  is  gradually  stripped 
of  its  more  important  functions. 

In  spite  of  the  fact  that  the  different  periods  merge 
into  one  another  by  insensible  gradations,  the  dominant 
tendencies  in  each  are  sufficiently  distinct  to  justify  the 
classification  above  outlined.  Thus  we  may  still  be  said 
to  be  in  the  midst  of  the  second  period,  although  the 
concentration  of  power  in  the  mayor  represents  a  dis- 
tinct tendency,  particularly  marked  in  our  larger  cities, 
and  leads  to  the  conclusion  that  the  third  period  of 
development  has  begun  in  certain  portions  of  the 
country. 

The  form  of  government  which  prevailed  during  the 
first  period  was  a  direct  inheritance  from  the  English 
system.  The  fact  that  the  English  people  have  been 
able  to  develop  a  high  degree  of  efficiency  under  a  sys- 
tem which  we  have  become  accustomed  to  regard  as  the 
worst  possible  form  of  governmental  organization,  throws 
an  interesting  side  light  on  the  relative  importance  of 
governmental  form  as  one  of  the  factors  in  the  mu- 
nicipal problem.  The  period  during  which  council 
supremacy  prevailed  in  the  United  States  furnishes 
abundant  illustration  of  the  weakness  of  any  form  of 
government,  where  the  lack  of  positive  standards  of 
public  opinion  permits  a  representative  assembly  to  con- 
duct public  affairs  without  any  effective  responsibil- 
ity. The  population  of  our  American  cities,  absorbed 
in  the  exploitation  of  the  resources  of  the  country,  was 


170     PROBLEMS    OF    CITY    GOVERNMENT 

interested  primarily  in  the  protection  of  personal  and 
property  rights.  Beyond  this,  interest  in  government 
did  not  extend.  So  long  as  the  council  provided  a  fairly 
good  police  system,  the  people  did  not  concern  them- 
selves as  to  whether  the  individual  councilors  were  de- 
riving personal  profit  from  the  public  treasury. 

It  is  not  surprising,  therefore,  that  the  elective  as- 
semblies, thus  emancipated  from  popular  control,  should 
yield  to  the  temptations  which  beset  the  disbursement 
of  public  funds.  Giveii  the  conditions  of  commercial 
and  industrial  life  during  the  first  four  decades  of  the 
last  century,  the  student  of  American  political  life  is 
surprised  to  find  that  corruption  and  inefficiency  were 
not  far  greater.  Had  the  council  confined  itself  to  mere 
jobbery  and  log-rolling,  it  is  probable  that  the  system 
would  have  remained  unchanged  for  a  longer  period. 
The  attempt  on  the  part  of  the  council  to  use  every 
municipal  office  for  political  purposes  and  to  direct 
every  detail  of  administrative  activity  proved  a  constant 
menace  to  administrative  stability,  and  made  continuity 
of  municipal  policy  impossible.  As  soon  as  the  evils 
incident  to  this  condition  of  affairs  reached  the  depart- 
ments affecting  the  personal  and  property  rights  of  the 
citizens,  a  radical  change  of  some  kind  was  inevitable. 

The  most  effective  remedy  would  have  been  to  send  a 
better  class  of  representatives  to  the  city  council,  as  was 
done  in  England  under  similar  conditions.  This  would 
have  required  a  larger  amount  of  civic  energy  than  the 


THE    MODERN   MUNICIPALITY  171 

population  was  prepared  to  expend.  The  line  of  least 
resistance  was  to  experiment  with  changes  in  govern- 
mental organization.  In  making  these  changes,  the  peo- 
ple turned  naturally  to  the  state  and  national  govern- 
ments, which,  within  their  respective  spheres,  had  proved 
themselves  capable  of  coping  with  complex  political  and 
social  problems.  It  was  felt  that  the  concentration  of 
power  in  the  council  was  no  longer  in  harmony  with  the 
principles  which  our  political  experience  had  demon- 
strated to  be  of  unquestioned  validity.  Petition  after 
petition  was  sent  to  the  state  legislatures,  requesting 
that  the  form  of  city  government  be  remodeled  after 
the  pattern  of  the  state  and  national  governments. 

The  response  to  these  petitions  brings  us  into  the 
second  period  of  municipal  development,  in  which  an 
elective  and  independent  mayor,  vested  with  an  execu- 
tive veto,  is  given  a  position  coordinate  with  the  council. 
This  form  of  government  was  adopted  very  generally 
throughout  the  country,  and  under  it  the  majority  of 
our  cities  are  now  organized.  The  effect  of  the  change 
was  to  place  the  control  over  the  police  service  in  the 
mayor,  and  to  hold  him  responsible  for  the  efficiency  of 
the  service.  In  this  second  period  American  cities 
passed  through  the  same  experience  as  in  the  preceding 
epoch.  The  municipal  departments  directly  affecting 
protection  of  life  and  property  were  fairly  well  admin- 
istered, while  the  services  further  removed  from  the 
daily  life  and  economic  interests  of  the  people  did  not 


172      PROBLEMS    OF    CITY    GOVERNMENT 

call  forth  any  serious  or  concerted  protest  against  waste- 
fulness, extravagance,  or  even  inefficiency.  In  the  larger 
cities,  however,  where  social  problems  are  at  once  more 
complex  and  more  pressing,  the  shortcomings  of  local 
government  aroused  sufficient  discontent  to  raise  anew 
the  question  of  a  remedy  through  administrative  re- 
organization. 

The  lack  of  definite  administrative  responsibility  re- 
sulting from  the  division  of  power  between  the  mayor 
and  the  council  aroused  the  same  kind  of  dissatisfac- 
tion as  prevailed  during  the  period  of  council  supremacy. 
It  was  felt  that  greater  efficiency  would  be  secured  if 
responsibility  could  be  definitely  fixed.  The  readjust- 
ment of  our  municipal  system  which  resulted  increased 
the  powers  of  the  mayor  at  the  expense  of  the  council. 
In  Philadelphia,  Brooklyn,  New  York,  and  especially 
in  the  Greater  New  York,  this  tendency  has  found  most 
distinct  expression. 

With  these  three  forms  of  municipal  government 
before  us,  it  becomes  necessary  to  examine  which,  if  any, 
is  best  adapted  to  meet  the  problems  that  confront  our 
municipalities.  It  is  hardly  profitable  to  devote  much 
time  or  attention  to  the  form  of  organization  which 
obtained  during  the  early  period  of  our  history.  It  is 
quite  evident  that  we  have  discarded  definitely  and  irrev- 
ocably the  supremacy  of  the  council  in  local  affairs. 

The  second  plan  of  organization,  namely,  that  mod- 
eled after  our  national  and  state  governments,  is  the 


THE    MODERN    MUNICIPALITY  173 

prevailing  type  at  the  present  time,  and  deserves,  there- 
fore, more  careful  consideration.  Briefly  outlined,  it 
consists  of  a  popularly  elected  mayor,  whose  power 
of  appointment  is  restricted  to  a  few  heads  of  depart- 
ments, and  is  subject  to  the  advice  and  consent  of  the 
higher  branch  of  councils.  He  exercises  over  legislation 
a  suspensive  veto  of  exactly  the  same  character  as  that 
enjoyed  by  the  governor  of  a  state  and  the  President  of 
the  United  States.  The  local  legislature  is  often  bicam- 
eral, and  is  usually  elected  on  the  district  plan,  exercising 
in  its  upper  branch  concurrent  powers  of  appointment 
with  the  mayor,  and  vested  with  the  power  of  determin- 
ing local  legislative  and  financial  policy.  Heads  of  de- 
partments who  are  not  appointed  by  the  mayor  are 
elected  by  popular  vote.  Of  these,  the  most  important 
are  the  city  comptroller  or  auditor,  and  in  some  cities 
the  city  treasurer,  the  receiver  of  taxes,  and  the  city 
solicitor.  As  soon  as  we  get  beyond  this  mere  outline 
of  organization,  however,  the  greatest  diversity  appears, 
particularly  in  the  relations  existing  between  such  heads 
of  departments  and  the  council. 

The  final  test  of  every  form  of  governmental  organ- 
ization is  the  adaptation  of  structure  to  function.  In 
subjecting  the  prevailing  form  of  city  government  to 
this  test  we  must  consider  the  executive  in  the  narrower 
and  in  the  broader  sense.  As  regards  the  former — the 
mayor — there  is  but  little  doubt  that  this  office  has  been 
relatively  the  most  satisfactory  part  of  the  system.  It 


174     PROBLEMS    OF    CITY    GOVERNMENT 

is  interesting  to  note  that  the  United  States  is  the  only 
country  in  which  the  mayor  is  elected  by  popular  vote. 
In  England,  Germany,  France,  and  generally  through- 
out the  continent  of  Europe,  he  is  either  the  appointee 
of  the  council  or  of  the  central  government.  So  thor- 
oughly are  we  committed  to  the  elective  system,  how- 
ever, that  any  practicable  scheme  of  municipal  reorgan- 
ization must  accept  this  principle  as  an  unchangeable 
factor.  Nor  is  there  any  valid  reason  for  discarding  it, 
for  the  sense  of  dignity  which  comes  to  the  official 
elected  by  the  community  at  large  and  the  sense  of  re- 
sponsibility which  comes  with  the  enjoyment  of  polit- 
ical power  have  assured  a  higher  standard  of  ability 
in  this  office  than  in  any  other  portion  of  the  municipal 
system. 

The  organization  of  the  executive  in  the  broader 
sense,  namely,  the  administrative  departments  consid- 
ered as  a  unit,  is  in  a  far  less  satisfactory  condition. 
Experience  has  shown  that  stability  and  continuity  of 
policy  are  the  primary  requisites  for  efficiency  in  munic- 
ipal departments,  particularly  in  those  cases  in  which 
technical  knowledge  and  preparation  are  required.  The 
popular  election  of  such  officials  as  the  city  treasurer 
and  the  receiver  of  taxes  tends  to  prevent  the  continuity 
of  policy  which  the  administration  of  these  departments 
requires.  In  these  offices  real  responsibility  is  not  en- 
forced through  popular  election,  for,  as  a  rule,  they  have 
little  to  do  with  directing  the  general  policy  of  the 


THE    MODERN    MUNICIPALITY  175 

municipality.  Honesty  in  administration,  a  thorough 
grasp  of  every  detail  of  the  financial  system,  and  a  well- 
trained  ability  to  adapt  this  system  to  the  increasing 
complexity  of  city  functions,  constitute  the  qualities 
necessary  to  success.  Popular  judgment,  no  matter  how 
enlightened,  is  unable  to  furnish  the  standards  to  which 
the  administration  should  conform.  The  short  term  of 
office  and  the  relative  certainty  of  a  change  of  incumbent 
at  the  close  of  each  term  remove  the  incentive  to  improve 
departmental  organization.  In  our  larger  cities  many 
months  must  elapse  before  the  comptroller  or  auditor 
can  acquaint  himself  with  the  complexities  of  municipal 
accounting.  When,  finally,  he  becomes  familiar  with 
the  details  of  his  office  the  close  of  his  term  is  so  near 
at  hand  that  he  usually  deems  it  inadvisable  to  make 
any  radical  changes. 

As  regards  the  other  heads  of  departments,  viz., 
those  appointed  by  the  mayor  with  the  advice  and  con- 
sent of  councils,  even  greater  difficulties  present  them- 
selves. The  power  of  confirming  or  rejecting  appoint- 
ments vested  in  the  upper  branch  inevitably  leads  to 
the  interference  of  that  body  with  the  details  of  depart- 
mental policy.  This  has  been  one  of  the  most  fruitful 
sources  of  jobbery  and  corruption.  In  addition,  the 
mayor  is  able  to  shirk  responsibility  for  his  appointments 
on  the  plea  that  he  had  to  consult  the  wishes  of  councils 
before  selecting  the  heads  of  departments.  Whatever 
may  be  the  justification  for  this  plea,  it  is  certain  that 


176     PROBLEMS    OF    CITY    GOVERNMENT 

this  impression  is  created  in  the  community,  and  results 
in  the  shifting  of  responsibility.  Finally,  given  con- 
ditions such  as  exist  in  most  of  our  municipalities,  it  is 
tolerably  certain  that  with  the  mayor  and  councils  coop- 
erating in  appointments,  each  incoming  administration 
will  make  a  clean  sweep  of  the  higher  official  class,  and 
will  only  be  restrained  by  rigid  civil-service  rules  in 
the  lower  administrative  service.  This  has  been  the 
experience  in  every  city  in  which  the  system  has  been 
tried.  As  we  shall  presently  see,  to  remedy  this  defect 
will  require  a  twofold  change — first,  the  concentration 
of  the  power  of  appointment  in  the  mayor,  and  a  dif- 
ferent distribution  of  powers  between  the  executive  and 
the  legislative  from  that  which  exists  at  the  present  time. 
Before  examining  these  necessary  changes  let  us  turn 
to  the  organization  and  powers  of  the  legislative  depart- 
ment. It  has  already  been  pointed  out  that  the  bi- 
cameral council  grew  out  of  the  application  of  our 
national  political  ideas  to  local  government.  Its  main 
virtue  was  to  prevent  hasty  and  ill-considered  action, 
particularly  when  the  result  of  such  action  might  en- 
danger the  political  and  civil  rights  of  the  individual. 
To  the  founders  of  the  republic  this  system  represented 
one  of  the  "  checks  and  balances  "  through  which  indi- 
vidual rights  were  to  be  guaranteed.  They  were  willing 
to  sacrifice  ease  and  rapidity  of  legislative  action  to 
what  seemed  to  them  the  main  purpose  of  government, 
namely,  the  protection  of  individual  rights. 


THE    MODERN    MUNICIPALITY  177 

As  the  dissatisfaction  with  the  working  of  the  sys- 
tem of  municipal  government  has  increased,  the  ques- 
tion has  naturally  arisen  whether  the  nature  of  city 
problems  is  such  as  to  justify  the  application  of  the 
political  principles  which  obtain  in  our  national  and  state 
governments.  It  is  clear  at  first  glance  that  the  protec- 
tion of  the  fundamental  civil  and  political  rights  rests 
with  the  national  and  state  governments  rather  than 
with  the  municipalities.  Whatever  the  advantages  of 
such  a  system  in  contributing  to  the  security  of  indi- 
vidual rights,  there  is  always  attached  to  it  the  grave 
danger  of  a  dissipation  of  political  responsibility.  Where, 
therefore,  the  problems  of  government  have  no  direct 
relation  to  the  security  of  individual  rights,  the  dangers 
incident  to  a  lack  of  political  responsibility  are  greatly 
increased.  Municipalities  have  few  if  any  distinctively 
political  problems  to  deal  with.  Good  government  re- 
quires that  responsibility  for  the  decisions  on  local  legis- 
lative policy  be  quickly  and  readily  enforced.  The  expe- 
rience of  every  American  city  shows  that  under  a 
bicameral  system  such  enforcement  is  almost  if  not  quite 
impossible.  Whenever  the  opposition  or  resentment  of 
the  public  is  aroused  by  reason  of  some  mistaken  or  sus- 
picious act,  each  chamber  endeavors  to  throw  the  odium 
upon  the  other,  and  in  the  resulting  popular  uncertainty 
both  escape  censure. 

Another  principle  of  considerable  importance  is  that 
a  bicameral  system  presupposes  a  different  unit  of  rep- 


178     PROBLEMS    OF    CITY    GOVERNMENT 

reservation  in  each  house.  Under  our  present  municipal 
system  territorial  extension  and  population  constitute 
the  only  differences  between  the  units  of  representation 
of  the  upper  and  lower  houses.  In  both  branches  we 
find  petty  sectional  interests  giving  the  tone  to  legisla- 
tion. The  position  of  each  member  is  dependent  upon 
the  number  of  special  favors  he  can  secure  for  his  special 
district.  In  this  constant  bickering  of  petty  interests 
the  broader  and  more  permanent  interests  of  the  munici- 
pality are  lost  sight  of. 

But  this  is  by  no  means  the  most  important  violation 
of  sound  principles  of  governmental  organization.  The 
work  of  a  municipality  may,  from  one  point  of  view,  be 
classed  under  two  distinct  heads:  First,  the  determina- 
tion of  the  general  policy  in  the  various  departments 
which  must  naturally  rest  with  the  legislative  authority ; 
and  secondly,  the  execution  of  the  details  of  such  pol- 
icy, which  must  be  assigned  to  administrative  depart- 
ments, if  the  highest  standards  of  efficiency  are  to 
prevail.  In  but  few  cases  has  there  been  anything 
approaching  a  recognition  of  these  principles  by  our 
municipal  legislatures.  The  desire  to  control  every 
administrative  detail  has  too  often  resulted  in  a  subordi- 
nation of  the  city's  interests  to  the  personal  profit  of  a 
group  of  councilors,  and  in  every  case  to  the  great  detri- 
ment of  the  service. 

Before  drawing  any  definite  conclusions  from  these 
lessons  of  experience,  it  will  be  well  to  examine  briefly 


THE    MODERN    MUNICIPALITY  179 

the  third  form  of  city  government  to  which  we  have 
referred,  namely,  that  in  which  the  council  is  shorn  of 
its  most  important  powers,  giving  to  the  mayor  the  com- 
manding position  in  the  city  government. 

The  process  of  reducing  the  council  to  a  subordinate 
position  in  the  city  government  has  passed  through  two 
distinct  stages:  First,  to  deprive  it  of  its  independent 
as  well  as  of  its  concurrent  powers  of  appointment,  and 
secondly,  to  take  from  it  its  more  important  financial 
powers.  The  first  change  was  dictated  by  a  recognition 
of  the  impossibility  of  fixing  responsibility  with  a 
divided  power  of  appointment.  The  popular  distrust  of 
local  legislative  bodies  has  become  so  deeply  rooted, 
however,  that  the  further  step  of  depriving  the  council 
of  many  of  its  financial  powers  is  now  being  taken.  In 
the  larger  cities,  particularly  in  the  Greater  New  York, 
the  council  has  been  deprived  of  these  powers  which  in 
its  earlier  history  furnished  the  main  reason  for  its  exist- 
ence. In  fact,  until  quite  recently  the  principle  that 
financial  policy  should  be  directed  by  the  representative 
assembly  was  one  of  the  unquestioned  tenets  of  govern- 
mental organization  in  the  United  States.  Instead  of 
attempting  the  more  thoroughgoing  remedy  of  enforcing 
a  higher  standard  of  capacity  and  integrity  in  the  city 
council,  the  simplest  plan  seemed  to  be  to  take  from  the 
council  those  powers  which  it  had  shown  itself  in- 
competent to  administer. 

In  the  recent  charter  of  the  Greater  New  York  this 


180      PROBLEMS    OF    CITY    GOVERNMENT 

tendency  has  found  its  most  distinct  expression.  The 
framing  of  the  budget  is  intrusted  to  a  Board  of  Esti- 
mate and  Apportionment,  made  up  of  the  mayor,  the 
comptroller,  the  president  of  the  Board  of  Aldermen, 
and  the  presidents  of  the  five  boroughs,  into  which  the 
city  is  divided.  The  budget,  as  framed  by  this  board, 
is  submitted  to  the  Municipal  Assembly,  which  can  only 
reduce  the  amount  assigned  to  each  item,  but  has  no 
power  to  increase  any  appropriation.  Furthermore,  any 
such  reduction  is  subject  to  the  approval  of  the  mayor, 
and  if  vetoed  by  him  must  be  passed  by  a  majority  of 
five  sixths  of  the  assembly.  In  making  the  transfer 
of  financial  powers  to  the  Board  of  Estimate  and  Ap- 
portionment, it  was  argued  that  such  a  change  would 
enable  the  citizens  to  hold  a  few  persons  to  strict  ac- 
countability for  the  financial  policy  of  the  city.  It  is 
not  surprising,  therefore,  that  local  elections  have  come 
to  mean  a  verdict  on  the  policy  of  the  mayor  rather 
than  on  that  of  the  council. 

The  lessons  to  be  derived  from  the  practical  work- 
ing of  the  two  types  of  government  which  have  pre- 
vailed since  the  beginning  of  the  last  century  are  suffi- 
ciently definite  to  guide  us  in  the  formulation  of  a 
system  of  municipal  government  which  shall  conform 
to  the  standards  of  popular  government  in  legislation, 
and  at  the  same  time  facilitate  continuity  of  adminis- 
trative policy. 

Any  scheme  of  municipal  reorganization,  in  order  to 


THE    MODERN    MUNICIPALITY  181 

be  practicable,  must  conform  to  the  accepted  political 
standards  of  the  American  people.  Any  attempt  to  re- 
model our  system  after  the  pattern  of  the  English  or 
continental  forms  is  quite  certain  to  meet  with  little 
response.  Our  political  ideas  have  moved  too  far  from 
the  system  of  council  supremacy  to  make  a  change  in  that 
direction  probable  or  even  desirable.  It  seems  equally 
certain  that  any  attempt  to  encroach  upon  the  principle 
of  universal  suffrage  will  arouse  the  most  violent  oppo- 
sition. Furthermore,  the  concentration  of  appointive 
power  in  the  mayor  is  rapidly  becoming  an  accepted 
principle  in  the  organization  of  municipalities.  It  is  a 
system  dictated  by  sound  principles  of  administration, 
and  is  in  harmony  with  present  tendencies  in  American 
industrial  and  political  methods. 

Given  these  factors,  what  is  the  form  of  organization 
best  adapted  to  meet  the  problems  of  city  life?  So  far 
as  the  legislative  department  is  concerned,  we  have  seen 
that,  however  justified  in  the  state  and  national  legisla- 
tures, city  conditions  do  not  furnish  the  basis  for  a 
bicameral  system.  The  kind  of  business  which  a  council 
is  called  upon  to  perform,  being  of  an  essentially  non- 
political  character,  calls  for  a  small  representative  as- 
sembly which  will  assume  the  full  responsibility  for  the 
general  policy  of  the  municipality. 

Within  recent  years  a  new  tendency  in  the  organiza- 
tion of  American  municipalities  has  begun  to  make  itself 

felt.    It  is  true  that  this  new  movement  has  not  as  yet 
13 


182     PROBLEMS    OF   CITY   GOVERNMENT 

assumed  large  proportions,  but  it  is  so  significant  and 
is  fraught  with  such  far-reaching  consequences  to  the 
future  of  local  institutions  in  the  United  States  that  it 
deserves  the  most  careful  attention. 

We  have  hitherto  proceeded  on  the  assumption  that 
in  the  organization  of  municipalities  the  same  care  must 
be  observed  in  the  division  of  executive,  legislative,  and 
judicial  functions  as  in  the  organization  of  state  and 
national  governments.  The  failure  of  this  organization 
to  give  satisfactory  results  has  gradually  undermined 
popular  faith  in  this  division  of  powers.  As  a  further 
influence  in  the  same  direction  we  must  take  into  con- 
sideration the  growing  importance  which  the  analogy 
between  the  municipal  and  the  business  corporation  has 
assumed  in  the  popular  mind.  The  doctrine  that  mu- 
nicipal administration  is  essentially  and  primarily  a 
business  matter,  to  be  managed  in  the  same  way  as  large 
corporate  enterprises,  has  deeply  influenced  the  attitude 
of  the  public  toward  municipal  affairs,  and  has  pre- 
pared the  way  for  a  form  of  organization  based  upon 
business  analogies  in  which  the  older  doctrine  of  the 
separation  of  powers  has  been  completely  set  aside. 

Another  fact  in  this  connection  which  deserves  con- 
sideration is  the  gradual  change  of  opinion  with  refer- 
ence to  the  character  of  public  control  over  municipal 
affairs.  For  a  long  time  it  was  the  accepted  belief 
throughout  the  United  States  that  the  control  over  the 
activities  of  local  government  could  best  be  secured 


THE    MODERN   MUNICIPALITY  183 

through  a  form  of  governmental  organization  in  which 
the  different  organs  of  government  controlled  one  an- 
other. The  division  of  the  city  council  into  two  branches, 
and  the  complete  separation  of  the  executive  from  the 
legislative  authorities  were  intended  to  serve  this  pur- 
pose. Through  such  a  mechanism  the  people  thought  to 
relieve  themselves  of  the  necessity  of  constant  alertness 
and  watchfulness. 

That  this  plan  has  failed  to  produce  the  results  an- 
ticipated is  a  fact  that  is  gradually  impressing  itself  on 
the  American  people.  There  is  a  growing  conviction 
that  the  only  effective  control  over  administrative  work 
is  to  be  found  in  the  standards  set  by  public  opinion. 
Instead  of  making  governmental  work  as  difficult  as 
possible  through  a  system  of  "  checks  and  balances," 
the  line  of  progressive  development  is  to  be  found  in 
giving  to  the  city  authorities  wide  powers,  in  holding 
them  to  strict  legal  accountability  in  the  exercise  of 
these  powers,  and  in  maintaining  a  high  standard  of 
administrative  efficiency  through  a  well-organized  pub- 
lic opinion.  All  these  influences  combined  have  served 
to  bring  about  a  change  of  attitude  toward  municipal 
affairs  which  has  found  expression  in  a  new  type  of 
municipal  organization.  Under  the  name  of  the  "  Gal- 
veston  "  and  "  Des  Moines  "  plans  a  new  principle  is 
gradually  finding  acceptance. 

The  genesis  of  the  idea  is  to  be  found  in  the  organ- 
ization of  the  District  of  Columbia,  which  is  governed 


184     PROBLEMS    OF    CITY    GOVERNMENT 

by  a  board  of  commissioners  appointed  by  the  President. 
In  1900  the  Legislature  of  Texas  framed  a  new  system 
of  municipal  organization  for  Galveston.  Under  the 
original  plan  as  first  submitted  the  government  of  the 
city  was  vested  in  an  appointive  board.  In  the  course 
of  the  discussion  an  amendment  was  introduced  com- 
bining the  appointive  and  elective  principles  by  making 
three  members  appointive  and  two  elective.  This  plan 
was  declared  unconstitutional  on  the  ground  that  it  did 
not  conform  to  the  requirements  of  a  democratic  organ- 
ization of  municipalities.1  Before  this  decision  was 

1  Ex  parte  Lewis.  Court  of  Criminal  Appeals  of  Texas,  March 
25,  1903.  73  Southwestern  Reporter,  811. 

In  declaring  unconstitutional  the  law  providing  for  the  appoint- 
ment of  a  municipal  commission  the  court  based  its  opinion  on 
Section  2,  Paragraph  1  of  the  Bill  of  Rights,  which  reads  as  follows: 
"All  political  power  is  inherent  in  the  people,  and  all  free  govern- 
ments are  founded  on  their  authority  and  instituted  for  their  bene- 
fit. The  faith  of  the  people  of  Texas  stands  pledged  to  the  preser- 
vation of  a  republican  form  of  government,"  etc.  Also  Section 
2,  Article  II  of  the  Constitution  which  provides:  "All  qualified 
voters  of  the  State  herein  described,  who  shall  have  resided  for 
six  months  immediately  preceding  an  election  within  the  limits 
of  any  city  or  corporate  town,  shall  have  the  right  to  vote  for 
mayor  and  all  other  elective  officers;  but  in  all  elections  to  de- 
termine the  expenditure  of  money  or  assumption  of  debt,  only 
those  shall  be  qualified  to  vote  who  pay  taxes  in  said  city  or 
incorporated  town." 

In  interpreting  this  article  the  court  said:  "We  believe  if  the 
clause  confers  the  right  on  the  voters  in  cities  to  vote  for  mayor 
and  other  elective  officers,  it  is  effective,  no  matter  where  it  may 
have  been  placed  by  the  Constitution  builders.  The  language  of 
said  provision  is  not  dubious.  It  is  clear  and  unequivocal.  The 
terms  used  are  strong.  The  language  is  that  the  elector  'shall  have 


handed  down,  however,  the  law  was  again  amended, 
making  all  the  members  of  the  board  elective.  This 
form  of  organization  has  been  extended  to  Houston, 
Dallas,  Fort  Worth,  and  El  Paso. 

A  step  in  the  same  direction  was  taken  by  the  city 
of  Des  Moines  in  1907.  Under  an  act  passed  by  the 
Iowa  Legislature  on  March  29,  1907,  all  cities  of  the 
State  having  a  population  of  over  25,000  inhabitants 
are  permitted,  upon  petition  signed  by  twenty-five  per 
cent  of  the  electors,  to  submit  to  the  people  of  the  city 
the  question  of  adopting  the  plan  of  government  pro- 
vided for  under  the  act. 

The  plan  vests  the  entire  executive,  administrative, 
and  legislative  powers  of  the  municipality  in  a  mayor 
and  four  councilmen,  nominated  and  elected  at  large. 

the  right  to  vote  for  mayor  and  other  elective  officers.'  If  this  right 
is  conferred,  by  what  power  can  the  Legislature  deny  it?  If  they 
cannot  do  it  directly,  can  they  accomplish  it  by  indirection?  To 
hold  that  the  Constitution  makers  undertook  the  task  of  defining 
qualifications  of  voters  in  cities,  and  providing  that  persons  pos- 
sessing the  enumerated  qualifications  should  have  the  right  to  vote 
for  mayor  and  other  elective  officers,  and  then  to  decide,  without 
an  express  provision  of  the  Constitution  on  the  subject  that  the 
Legislature  should  have  the  power  to  withhold  this  right  to  vote 
in  cities,  would,  in  our  opinion,  be  a  travesty  on  constitutional 
construction.  Certainly  after  the  right  to  vote  had  been  conferred, 
it  would  be  a  strange  doctrine  that  the  Legislature,  without  some 
constitutional  warrant,  would  be  authorized  to  limit  or  deny  the 
right  of  suffragans  to  vote  in  cities." 

The  Supreme  Court  of  the  State  reversed  the  decision  of  the 
Court  of  Criminal  Appeals,  but  before  this  occurred  the  law  had 
been  changed  to  its  present  form. 


186     PROBLEMS    OF    CITY    GOVERNMENT 

The  government  is  divided  into  five  administrative  de- 
partments, designated  as  follows: 

1.  Department  of  Public  Affairs. 

2.  Department  of  Accounts  and  Finances. 

3.  Department  of  Public  Safety. 

4.  Department  of  Streets  and  Public  Improvements. 

5.  Department  of  Parks  and  Public  Property. 

Each  member  of  the  board,  or  council,  as  it  is  called, 
is  assigned  to  one  of  these  departments  as  the  adminis- 
trative head  thereof.  It  is  furthermore  provided  that 
all  grants  of  franchises  to  public-service  corporations 
shall  first  be  submitted  to  popular  yote  for  approval.1 

It  is  furthermore  provided  that  any  member  of  the 
board  or  council  may  be  removed  upon  petition  of 
twenty-five  per  cent  of  the  electors  demanding  a  new 
election  for  the  office.  The  incumbent  may  be  a  candi- 

1  Every  ordinance  or  resolution  appropriating  money  or  ordering 
any  street  improvement  or  sewer  or  making  or  authorizing  the  making 
of  any  contract,  or  granting  any  franchise  or  right  to  occupy  or 
use  the  streets,  highways,  bridges  or  public  places  in  the  city  for  any 
purpose,  shall  be  complete  in  the  form  in  which  it  is  finally  passed, 
and  remain  on  file  with  the  city  clerk  for  public  inspection  at  least 
one  week  before  the  final  passage  or  adoption  thereof.  No  franchise 
or  right  to  occupy  or  use  the  streets,  highways,  bridges  or  public 
places  in  any  city  shall  be  granted,  renewed  or  extended,  except  by 
ordinance,  and  every  franchise  or  grant  for  interurban  or  street 
railways,  gas  or  water-works,  electric  light  or  power  plants,  heating 
plants,  telegraph  or  telephone  systems  or  other  public-service  utilities 
within  said  city  must  be  authorized  or  approved  by  a  majority  of 
the  electors  voting  thereon  at  a  general  or  special  election  as  provided 
in  Section  776  of  the  code. 


THE    MODERN    MUNICIPALITY  187 

date  at  such  election.  Opportunity  is  thus  offered  at 
any  time  to  pass  on  the  efficiency  or  honesty  of  any 
member  of  the  board.1 


1  The  holder  of  any  elective  office  may  be  removed  at  any  time 
by  the  electors  qualified  to  vote  for  a  successor  of  such  incumbent. 
The  procedure  to  effect  the  removal  of  an  incumbent  of  an  elective 
office  shall  be  as  follows:  A  petition  signed  by  electors  entitled  to 
vote  for  a  successor  to  the  incumbent  sought  to  be  removed,  equal 
in  number  to  at  least  twenty-five  per  centum  of  the  entire  vote  for 
all  candidates  for  the  office  of  mayor  cast  at  the  last  preceding 
general  municipal  election,  demanding  an  election  of  a  successor 
of  the  person  sought  to  be  removed  shall  be  filed  with  the  city  clerk, 
which  petition  shall  contain  a  general  statement  of  the  grounds 
for  which  the  removal  is  sought.  The  signatures  to  the  petition 
need  not  all  be  appended  to  one  paper,  but  each  signer  shall  add  to 
his  signature  his  place  of  residence,  giving  the  street  and  number. 
One  of  the  signers  of  each  such  paper  shall  make  oath  before  an 
officer  competent  to  administer  oaths  that  the  statements  made 
therein  are  true  as  he  believes,  and  that  each  signature  to  the  paper 
appended  is  the  genuine  signature  of  the  person  whose  name  it 
purports  to  be.  Within  ten  days  from  the  date  of  filing  such  petition 
the  city  clerk  shall  examine  and  from  the  voters'  register  ascertain 
whether  or  not  said  petition  is  signed  by  the  requisite  number  of 
qualified  electors  and,  if  necessary,  the  council  shall  allow  him  extra 
help  for  that  purpose;  and  he  shall  attach  to  said  petition  his  cer- 
tificate, showing  the  result  of  said  examination.  If  by  the  clerk's 
certificate  the  petition  is  shown  to  be  insufficient  it  may  be  amended 
within  ten  days  from  the  date  of  said  certificate.  The  clerk  shall, 
within  ten  days  after  such  amendment,  make  like  examination  of 
the  amended  petition,  and  if  his  certificate  shall  show  the  same  to 
be  insufficient,  it  shall  be  returned  to  the  person  filing  the  same; 
without  prejudice,  however,  to  the  filing  of  a  new  petition  to  the  same 
effect.  If  the  petition  shall  be  deemed  to  be  sufficient,  the  clerk 
shall  submit  the  same  to  the  council  without  delay.  If  the  petition 
shall  be  found  to  be  sufficient,  the  council  shall  order  and  fix  a  date 
for  holding  the  said  election  not  less  than  thirty  days  nor  more  than 


188  PROBLEMS  OF  CITY  GOVERNMENT 

The  act  also  gives  to  the  electors  of  the  city  the 
power  to  exercise  the  right  of  initiative.  If  a  proposed 
ordinance  is  accompanied  by  a  petition  signed  by  twenty- 
five  per  cent  of  the  electors,  the  council  is  compelled 
either  to  pass  such  ordinance  within  twenty  days  after 
the  filing  of  such  petition  or  to  order  a  special  election 
for  the  purpose  of  passing  on  such  ordinance.  If  the 
petition  is  signed  by  not  less  than  ten  nor  more  than 
twenty-five  per  cent  of  the  electors,  then  the  council  is 
required  within  twenty  days  either  to  pass  the  ordinance 
without  change,  or  to  submit  the  same  at  the  next  gen- 
eral city  election,  occurring  not  more  than  thirty  days 
after  the  filing  of  the  petition. 

forty  days  from  the  date  of  the  clerk's  certificate  to  the  council  that  a 
sufficient  petition  is  filed. 

The  council  shall  make  or  cause  to  be  made  publication  of  notice 
and  all  arrangements  for  holding  such  election,  and  the  same  shall 
be  conducted,  returned  and  the  result  thereof  declared,  in  all  respects 
as  are  other  city  elections.  The  successor  of  any  officer  so  removed 
shall  hold  office  during  the  unexpired  term  of  his  predecessor.  Any 
person  sought  to  be  removed  may  be  a  candidate  to  succeed  himself, 
and  unless  he  requests  otherwise  in  writing,  the  clerk  shall  place  his 
name  on  the  official  ballot  without  nomination.  In  any  such  re- 
moval election,  the  candidate  receiving  the  highest  number  of  votes 
shall  be  declared  elected.  At  such  election  if  some  other  person  than 
the  incumbent  receives  the  highest  number  of  votes,  the  incumbent 
shall  thereupon  be  deemed  removed  from  the  office  upon  qualification 
of  his  successor.  In  case  the  party  who  receives  the  highest  number 
of  votes  shall  fail  to  qualify,  within  ten  days  after  receiving  notifica- 
tion of  election  the  office  shall  be  deemed  vacant.  If  the  incumbent 
receives  the  highest  number  of  votes,  he  shall  continue  in  office. 
The  same  method  of  removal  shall  be  cumulative  and  additional  to 
the  methods  heretofore  provided  by  law. 


THE    MODERN    MUNICIPALITY  189 

The  people  are  also  given  the  power  of  protest  and 
referendum.  Section  20  of  the  act  provides  that  no  ordi- 
nance passed  by  the  council,  except  when  otherwise  re- 
quired by  the  general  laws  of  the  state,  by  the  provisions 
of  the  act.  or  for  the  immediate  preservation  of  the  pub- 
lic peace,  health,  or  safety,  and  passed  by  a  two-thirds 
vote  of  the  council,  shall  go  into  effect  before  ten  days 
subsequent  to  the  date  of  its  final  passage,  and  if  during 
this  period  a  petition  of  protest  signed  by  twenty-five 
per  cent  of  the  electors  of  the  city  is  presented  to  the 
council,  the  operation  of  the  ordinance  shall,  for  the  time 
being,  be  suspended.  The  council  is  then  required  to 
reconsider  such  ordinance,  and  if  the  same  be  not  re- 
pealed, it  must  be  submitted  to  the  electors  either  at  a 
general  or  special  municipal  election,  and  cannot  become 
operative  unless  a  majority  of  the  qualified  electors  vote 
in  favor  thereof.  The  act  furthermore  provides,  for  the 
greatest  publicity  of  city  affairs,  especially  in  the  matter 
of  public  accounting. 

The  only  city  which  up  to  the  present  time  has 
availed  itself  of  the  provision  of  this  act  isj)es  Moines, 
but  as  the  plan  did  not  go  into  operation  until  the  last 
Monday  in  March,  1908,  it  is  too  early  to  form  any  opin- 
ion on  its  actual  operation.  It  is  clear,  however,  that 
the  basic  idea  is  to  assure  as  large  a  measure  of  public 
control  as  possible.  If  successful  in  these  smaller  cities, 
this  plan  will  exert  a  profound  influence  on  the  political 
thought  of  the  country.  It  will  demonstrate  that  some 


of  our  traditional  ideas  with  reference  to  the  organiza- 
tion of  government  require  radical  revision.  The  health- 
ful kernel  of  this  new  movement  is  that  it  rests  on  an 
abiding  faith  in  the  efficacy  of  public  control.  It  places 
responsibility  for  good  government  exactly  where  it 
belongs,  namely,  on  the  people  themselves,  and  makes 
necessary  the  development  of  a  well-organized  public 
opinion. 

The  fact  that  this  new  movement  has  made  a  deep 
impression  is  attested  by  the  efforts  that  are  being  made 
to  secure  the  adoption  of  similar  plans  in  different  sec- 
tions of  the  country.  In  Massachusetts  we  find  con- 
tinued agitation  in  favor  of  this  plan;  in  Salem,  North- 
ampton, and  even  in  Boston,  considerable  interest  is 
being  aroused.  In  Tennessee:  Nashville  and  Memphis; 
in  Missouri:  Kansas  City;  in  California:  San  Diego 
and  Oakland ;  in  Wisconsin :  Madison  and  Sheboygan ; 
in  Texas :  Austin  and  Beaumont,  are  all  actively  push- 
ing for  a  similar  system.  In  Chicago  the  agitation  for 
a  commission  plan  of  government  has  assumed  large 
proportions. 

In  Kansas  the  last  legislature  provided  for  the  gov- 
ernment of  cities  by  commission,  but  as  yet  the  new  plan 
has  not  been  adopted  by  any  of  the  cities  of  the  State. 
In  Wichita  the  attempt  to  incorporate  under  the  new 
act  failed  at  a  popular  election.  Topeka  and  Coffeeville 
are  now  agitating  the  question  to  avail  themselves  of 
the  new  type  of  organization. 


191 

While  this  dependence  on  public  opinion  as  the  con- 
trolling- factor  in  local  government  constitutes  a  distinct 
step  forward,  it  is  evident  that  in  order  to  make  this 
control  effective  it  must  emanate  from  a  public  opinion, 
which  is  not  only  well  organized,  but  which  is  also  highly 
enlightened.  This  necessity  lends  a  new  significance  to 
the  efforts  that  are  now  being  made  to  place  the  people 
in  full  possession  of  the  basic  facts  concerning  municipal 
affairs.  It  is  not  sufficient  that  the  enlightenment  of  the 
public  mind  be  restricted  to  periods  of  moral  upheaval. 
In  order  that  public  opinion  may  exert  a  healthful  influ- 
ence on  local  affairs,  it  must  be  kept  in  constant  posses- 
sion of  the  facts,  and  these  facts  must  be  so  presented 
that  a  judgment  can  readily  be  formed  on  the  work  of 
municipal  departments. 

The  establishment  of  the  Municipal  Research  Bureau 
in  New  York  City  marks  an  epoch  in  this  process  of 
the  enlightenment  of  public  opinion.  The  primary  pur- 
pose of  this  bureau  is  not  to  ferret  out  abuses,  but  rather 
to  place  before  the  public  in  the  most  accessible  and 
striking  form,  the  facts  upon  the  basis  of  which  an  accu- 
rate opinion  of  the  efficiency  or  inefficiency  of  particular 
departments  may  be  formed.  In  this  way,  and  in  this 
way  only,  may  we  expect  permanent  improvements  in 
our  city  life.  Agencies  such  as  these  make  possible  an 
effective  control  over  municipal  administration  through 
public  opinion. 

To  assure  to  any  form  of  municipal  organization  its 


192      PROBLEMS    OF    CITY    GOVERNMENT 

highest  efficiency,  it  will  be  necessary  to  give  to  the 
municipality  a  more  definite  place  in  our  political  system 
than  it  has  heretofore  occupied.  The  numerous  constitu- 
tional prohibitions  upon  the  state  legislature,  while  they 
have  remedied  certain  evils,  have  been  wholly  inadequate 
to  secure  to  the  municipality  a  large  measure  of  local 
autonomy.  It  seems  unlikely  that  any  system  of  consti- 
tutional limitations  can  ever  be  devised  which  will  take 
the  place  of  the  recognition  by  the  legislature  of  the 
necessity  of  respecting  municipal  home  rule  as  a  primary 
requisite  for  the  development  of  vigorous  local  institu- 
tions. We  are  now  beginning  to  see  that  in  many  cases 
these  constitutional  limitations  have  developed  as  many 
real  evils  as  they  were  intended  to  remedy,  and  there 
are  indications  that  the  faith  of  the  American  people  in 
such  mechanical  safeguards  is  being  gradually  under- 
mined. The  experience  of  the  last  quarter  of  a  cen- 
tury demonstrates  that  we  must  give  to  the  state  leg- 
islature wide  discretionary  powers.  The  standards  of 
public  opinion  must  be  so  well  defined  and  the  stand- 
ard of  capacity  of  the  legislatures  so  high  as  to  assure 
the  continuous  recognition  of  those  principles  of  govern- 
ment upon  which  the  successful  working  of  democratic 
institutions  rests,  namely,  confidence  of  the  people  in 
their  representatives,  combined  with  a  degree  of  self- 
control  in  the  state  legislatures,  which  will  enable  the 
municipalities  to  determine  their  local  policy  without 
fear  of  interference  from  without. 


THE    MODERN    MUNICIPALITY  193 

REFERENCES 

CONKLING,  A.  R.  "City  Government  in  the  United  States." 
New  York:  Appleton,  1894. 

GOODNOW,  F.  J.  "City  Government  in  the  United  States." 
New  York:  Century,  1904. 

NATIONAL  MUNICIPAL  LEAGUE.  "Municipal  Program."  New 
York:  Macmillan,  1900. 

SHAW,  A.  "Municipal  Government  in  Great  Britain."  Cen- 
tury, 1895. 

"Municipal  Government  in  Continental  Europe."  Cen- 
tury, 1895. 

WILCOX,  D.  F.  " The  Study  of  City  Government."  Macmillan, 
1897. 


CHAPTER    IX 

CITY    GOVERNMENT    AND    AMERICAN    DEMOCRATIC    IDEALS 

JOHN  STUART  MILL  opens  his  discussion  of  "  Repre- 
sentative Government  "  with  the  remark  that  govern- 
ment ' '  by  some  minds  is  conceived  as  strictly  a  practical 
art,  giving  rise  to  no  questions  but  those  of  means  and 
an  end.  Forms  of  government  are  assimilated  to  any 
other  expedients  for  the  attainment  of  human  objects. 
They  are  regarded  as  wholly  an  affair  of  invention  and 
contrivance.  Being  made  by  man,  it  is  assumed  that 
man  has  the  choice  either  to  make  them  or  not,  and  how 
or  on  what  pattern  they  shall  be  made.  Government,  ac- 
cording to  this  conception,  is  a  problem  to  be  worked  like 
any  other  questions  of  business." 

Mill  here  expresses  a  view  which  still  dominates  mod- 
ern political  thought,  in  spite  of  the  fact  that  the  philos- 
ophy of  which  it  is  the  expression  has  long  since  ceased 
to  color  the  study  of  institutions  other  than  political. 
It  is  a  curious  fact  that  while  the  doctrine  of  evolution, 
with  its  leading  principle  of  the  adaptation  of  form  to 
function,  has  profoundly  influenced  our  reasoning  on  all 
matters  pertaining  to  social  relations,  it  has  failed  to 
overcome  the  influence  of  tradition  upon  our  political 

194 


AMERICAN   DEMOCRATIC    IDEALS       195 

thinking.  We  still  deal  with  political  phenomena  as  if 
governmental  organization  could  be  made,  unmade,  and 
remade  without  reference  either  to  industrial  conditions 
or  to  the  special  problems  with  which  government  has  to 
deal.  The  principal  effect  and  the  immediate  danger  of 
this  attitude  toward  questions  of  civil  government  are 
that  our  reasoning  on  political  affairs  is  usually  "  in 
harmony  with  what  we  want  rather  than  with  the  con- 
ditions and  problems  which  government  has  to  face." 
The  history  of  city  government  in  the  United  States 
presents  a  peculiar  interest  to  the  student  of  poli- 
tics, because  it  illustrates  so  clearly  these  general  prin- 
ciples. 

The  formative  period  in  the  development  of  our 
American  cities  was  dominated  by  an  essentially  nega- 
tive view  of  government.  During  the  eighteenth  and  the 
greater  part  of  the  nineteenth  centuries  American  polit- 
ical thought  was  concerned  primarily,  in  fact,  almost 
exclusively,  with  the  protection  of  individual  rights.  A 
minimum  of  government  and  a  maximum  of  individual 
liberty  represented  the  primary  standards  of  political 
thought  and  action.  From  our  present  perspective  we 
can  appreciate  the  great  service  rendered  by  these  essen- 
tially negative  political  ideas.  They  strengthened  that 
feeling  of  personal  responsibility  and  initiative  which 
has  contributed  so  much  toward  our  industrial  develop- 
ment and  has  served  to  maintain  that  alertness  to  pos- 
sible encroachment  upon  the  domain  of  individual  lib- 


196      PROBLEMS    OF    CITY    GOVERNMENT 

erty  which  has  been  the  admiration  and  envy  of  the 
people  of  continental  Europe. 

Furthermore,  the  restriction  of  governmental  activ- 
ity to  the  protection  of  person  and  property  and  the 
care  of  the  dependent,  defective  and  delinquent  classes 
enabled  the  country  to  train  the  electorate  at  a  time 
when  the  functions  of  government  were  few  and  the 
possibilities  of  harm  due  to  inexperience  reduced  to  a 
minimum.  Local  government  was  then  looked  upon  as 
the  cradle  of  American  liberties  and  as  the  bulwark 
against  the  possible  tyranny  of  the  state  and  federal 
governments.  It  was  expected  to  preserve  and  foster  a 
feeling  of  opposition  toward  any  extension  of  the  posi- 
tive action  of  government. 

Viewed  in  the  perspective  of  the  last  hundred  years, 
the  contrast  between  the  conditions  out  of  which  our 
ideas  of  local  government  developed  and  the  circum- 
stances which  now  confront  us  is  fraught  with  lessons 
which  we  cannot  afford  to  ignore  if  we  hope  to  build 
up  vigorous  local  institutions.  The  menace  to  indi- 
vidual liberty  from  the  tyranny  of  government  is  no 
longer  a  real  one,  and  to  this  extent,  therefore,  there 
is  justification  for  the  essentially  negative  views  of 
government.  On  the  other  hand,  the  concentration  of 
population  and  the  growth  of  great  industrial  centers 
have  brought  into  the  foreground  a  mass  of  new  prob- 
lems which  the  community  is  compelled  to  face.  Many 
of  them  come  directly  within  the  legitimate  sphere  of 


AMERICAN    DEMOCRATIC    IDEALS        197 

government,  but  so  strong  is  the  hold  of  the  political 
ideas  of  the  eighteenth  century  that  in  most  of  our  cities 
we  must  depend  upon  private  effort  for  their  solution. 

The  widening  gap  between  the  life  of  the  community 
and  the  activities  of  our  city  government  is  impressing 
itself  on  every  student  of  American  city  life.  The  first 
step  in  the  development  of  greater  civic  vigor  is  some 
method  of  bridging  this  gap,  which  shall  include,  pri- 
marily, such  an  extension  of  municipal  functions  that 
the  community  can  grapple  with  the  problems  which 
can  be  solved  only  through  organized  action;  and  sec- 
ondly, such  a  readjustment  of  the  machinery  of  govern- 
ment that  positive  action  will  be  fostered  rather  than 
made  increasingly  difficult,  as  under  our  present  system. 
The  ideas  of  governmental  organization,  which  we  have 
borrowed  from  an  earlier  period,  are  no  longer  appli- 
cable to  the  conditions  that  prevail  in  our  cities. 

If  we  examine  the  history  of  city  government  dur- 
ing the  last  fifty  years,  we  find  that  slowly  and  with 
great  reluctance  we  are  begining  to  acknowledge,  in  fact 
if  not  in  theory,  that  the  political  ideas  which  have 
dominated  our  reasoning  for  more  than  a  century  are 
no  longer  adequate  to  meet  the  complex  conditions  of 
modern  city  life.  We  continue  to  reason  as  if  the  po- 
litical principles  of  the  eighteenth  century  had  lost  none 
of  their  force,  but  the  pressure  of  circumstances  has 
nevertheless  compelled  us  to  make  certain  compromises, 

the  full  import  of  which  we  have  hardly  begun  to  realize. 
14 


198  PROBLEMS  OF  CITY  GOVERNMENT 

Our  inherited  ideas  of  democratic  government  have 
dictated  a  form  of  city  organization  in  which  the  local 
representative  assembly  or  city  council  occupies  an  im- 
portant position.  The  same  political  traditions  dictate 
that  the  higher  administrative  officials  of  the  city,  no 
matter  what  their  functions,  shall  be  chosen  by  popular 
election.  It  is  a  significant  fact  that  this  tenacious 
adherence  to  what  we  regard  as  the  essentials  of  democ- 
racy has  been  contemporaneous  with  a  totally  different 
movement  in  other  branches  of  administrative  activity. 
The  management  of  great  business  enterprises  is  being 
concentrated  in  the  executive  heads  of  industrial  cor- 
porations. The  responsibility  for  the  conduct  of  the 
affairs  of  educational  and  charitable  institutions  is  like- 
wise drifting  from  the  board  to  the  single  executive 
head.  Even  in  the  management  of  the  affairs  of  the 
church  this  tendency  toward  the  concentration  of  ex- 
ecutive power  is  apparent.  Wherever  the  form  of  board 
management  is  still  preserved,  the  actual  control  and  re- 
sponsibility are  vested  in  one  individual,  whether  he  be 
called  the  president  of  the  board  or  the  chairman  of 
the  executive  committee.  However  we  may  regard  this 
tendency,  there  is  every  indication  that  it  is  not  merely 
a  passing  phase,  but  that  the  immediate  future  will  wit- 
ness a  strengthening  of  its  influence. 

Tendencies  so  clearly  marked  in  American  business 
and  institutional  activity  are  certain  to  exert  an  influ- 
ence on  the  administration  of  public  affairs.  We  cannot 


AMERICAN   DEMOCRATIC    IDEALS        199 

hope  permanently  to  preserve  the  illusion  that  political 
organization  can  be  kept  free  from  the  influences  which 
are  dominant  in  every  other  department  of  our  national 
life. 

If  the  concentration  of  power  in  the  mayor  repre- 
sents a  permanent  tendency  in  American  administrative 
policy,  the  question  immediately  presents  itself  whether 
we  can  reconcile  these  changes  with  our  views  of  democ- 
racy. No  one  will  deny  that  the  increase  of  executive 
power  as  well  as  its  concentration  has  been  accompanied 
by  a  marked  increase  in  efficiency.  The  choice  presented 
to  our  American  communities,  therefore,  takes  the  form 
of  an  apparent  opposition  between  democracy  and  effi- 
ciency. Thus  presented,  there  is  little  doubt  as  to  the 
ultimate  choice  of  the  American  people,  who,  above  all 
other  peoples  of  western  civilization,  are  worshipers  of 
efficiency.  The  establishment,  therefore,  of  a  harmoni- 
ous relation  between  democracy  and  efficiency,  both  in 
thought  and  in  action,  becomes  a  requisite  for  the  main- 
tenance of  those  institutions  which  wre  are  accustomed  to 
regard  as  the  distinctive  products  of  American  civiliza- 
tion. 

If  this  analysis  of  the  present  situation  be  correct, 
the  outlook  for  the  municipal  council  is  anything  but 
encouraging.  While  the  analogy  between  a  business 
and  a  municipal  corporation  may  be  faulty  in  many  re- 
spects, it  is  of  real  value  when  viewed  from  the  stand- 
point of  the  organization  of  city  departments.  Whether 


200   PROBLEMS  OF  CITY  GOVERNMENT 

or  not  we  agree  with  this  analogy,  we  cannot  disregard 
the  fact  that  the  popular  view  with  reference  to  the 
administration  of  the  city's  executive  departments  is 
moving  toward  the  standards  which  have  proved  so  suc- 
cessful in  the  management  of  great  corporate  enter- 
prises. This  means  that  the  people  are  prepared  to  ac- 
cept the  same  administrative  standards  in  municipal 
affairs  as  those  which  prevail  in  the  business  world.  The 
recent  proposal  to  give  to  the  police  commissioner  of 
New  York  a  term  of  ten  years,  or  possibly  a  life  tenure, 
would  have  been  received  with  scorn  and  indignation 
fifty  years  ago.  To-day  it  is  regarded  by  many  as  the 
best  means  of  securing  an  efficient  administration  of  this 
service. 

Similarly,  the  increasing  limitation  of  the  powers  of 
the  municipal  council  is  not  due  to  any  decline  in  the 
character  of  its  membership,  but  rather  to  a  growing 
appreciation  of  the  difficulty  of  enforcing  responsibility 
against  a  large  assembly.  The  repeated  failure  of  the 
efforts  to  enforce  such  responsibility  is  accountable  for 
the  steady  decline  of  popular  interest  in  the  work  of  the 
council. 

It  is  significant  that  even  in  those  cities  in  which 
years  of  effort  have  finally  secured  an  improvement  in 
the  character  of  the  men  serving  in  the  local  legislative 
body,  the  betterment  of  the  administrative  service  is 
in  no  sense  commensurate  with  the  amount  of  effort 
expended.  The  vital  interest  of  the  citizens  lies  in 


AMERICAN    DEMOCRATIC    IDEALS       201 

strengthening  the  administrative  service  rather  than  the 
legislative  body.  The  gradual  appreciation  of  this  fact 
has  led  to  the  transference  of  what  were  formerly  re- 
garded as  legislative  functions  to  administrative  officers. 
Although  the  movement  is  by  no  means  uniform,  the 
general  trend  of  institutional  development  in  this  coun- 
try is  to  reduce  the  power  of  the  council  to  a  control 
over  finances,  and  by  means  of  constitutional  and  statu- 
tory limitations  to  set  definite  limits  even  to  this  control. 
The  council  is  gradually  assuming  the  position  of  an 
organ  of  government  to  prevent  the  extravagant  or  un- 
wise expenditure  of  public  funds.  It  is  thus  rapidly 
becoming  a  negative  factor  in  our  municipal  system. 
To  an  increasing  extent  the  American  people  are  look- 
ing to  the  executive  not  only  for  the  execution,  but  also 
for  the  planning  of  municipal  improvements.  Even  the 
freedom  of  discussion  in  the  council  is  being  subjected 
to  statutory  limitations  by  provisions  requiring  that  the 
vote  on  financial  and  franchise  questions  shall  not  be 
delayed  beyond  a  certain  period. 

This  decline  in  the  power  of  the  council  involves  no 
loss  of  popular  control.  In  every  city  in  which  the 
mayor  has  been  given  independent  powers  of  appoint- 
ment, and  has  been  made  the  real  head  of  the  adminis- 
trative organization  of  the  city,  the  sensitiveness  of  the 
government  to  public  opinion  has  been  considerably  in- 
creased. Rightly  viewed,  this  change  involves  possibili- 
ties of  popular  control  which  we  have  hardly  begun  to 


202      PROBLEMS    OF   CITY   GOVERNMENT 

realize.  Almost  every  city  in  the  country  offers  a  num- 
ber of  instances  in  which  the  mayor,  when  supported  by 
popular  opinion,  has  been  able  to  withstand  the  combined 
influence  of  the  council  and  any  machine  organization 
that  attempted  to  direct  his  action. 

The  lessons  of  this  experience  have  left  their  im- 
press upon  the  political  thought  of  the  American  peo- 
ple, and  explain  the  tendency  to  look  to  the  executive 
rather  than  to  the  legislative  authority  for  the  solution 
of  difficulties.  Popular  control  over  the  city  government 
will  become  more  effective  as  public  opinion  becomes 
more  thoroughly  organized.  At  present  we  must  de- 
pend upon  a  great  number  of  voluntary  organizations, 
representing  different  elements  in  the  community,  but 
which  cannot  from  the  nature  of  the  case  represent  the 
opinion  of  the  community  as  a  whole. 

The  danger  involved  in  this  tendency  toward  con- 
centration of  executive  power  is  that  the  council  will  be 
divested  not  only  of  its  administrative,  but  of  its  legis- 
lative powers  as  well.  The  desire  for  greater  adminis- 
trative efficiency  may  lead  us  to  a  type  of  government 
in  which  the  determination  of  executive  policy  will  be 
left  exclusively  to  the  mayor  and  his  heads  of  depart- 
ments. This  form  of  organization  is  certain  to  give  us 
better  government  than  does  our  present  large  and 
unwieldy  council.  The  accumulated  experience  of  Amer- 
ican cities  has  shown  that  unless  the  council  is  reduced 
to  a  single  chamber,  with  a  small  membership,  responsi- 


AMERICAN   DEMOCRATIC    IDEALS       203 

bility  cannot  be  enforced.  The  choice  that  presents  itself 
is  clear  and  simple.  We  must  either  make  the  council 
a  small  body  of  nine  or  eleven  members,  elected  by  the 
people,  having  complete  power  over  the  finances  of  the 
city,  or  we  shall  inevitably  be  driven  to  a  system  in 
which  the  council  will  disappear,  and  all  power  will  be 
lodged  in  the  mayor  and  his  heads  of  departments. 

The  reconciliation  of  the  idea  of  popular  government 
with  the  concentration  of  executive  power  represents 
the  first  step  toward  a  better  adjustment  of  our  polit- 
ical thinking  to  the  conditions  of  city  life.  A  second 
and  no  less  important  step  involves  some  further  modi- 
fications in  our  ideas  of  municipal  organization.  Ameri- 
can cities  are  organized  as  if  they  were  the  small  towns 
and  villages  of  fifty  years  ago.  We  have  proceeded 
on  the  assumption  that  an  aggressive  and  progressive 
municipal  policy  can  be  developed  out  of  the  compromise 
of  conflicting  district  interests.  As  a  matter  of  fact,  our 
present  plan  of  district  representation  clogs  positive 
action  and  prevents  the  systematic  planning  and  eco- 
nomical execution  of  great  public  improvements. 

Placing  the  mayor  as  a  check  upon  the  council  and 
the  council  as  a  check  upon  the  mayor  has  served  to 
strengthen  that  most  baneful  of  political  superstitions — 
the  belief  in  a  self-acting  governmental  mechanism 
which  will  carry  on  the  work  of  government  without 
the  need  of  watchfulness  and  alertness  on  the  part  of 
the  people.  For  every  evil,  no  matter  what  its  nature, 


204     PROBLEMS   OF   CITY    GOVERNMENT 

we  recur  to  the  statute  book.  There  is  a  widespread 
belief  throughout  the  country  that  for  every  abuse  there 
is  a  legislative  remedy.  This  belief  in  the  moralizing 
power  of  the  law  is  one  of  the  most  insidious  as  well  as 
one  of  the  most  corrupting  influences  in  our  public  life. 
It  leads  us  to  place  unenforceable  laws  on  the  statute 
books,  and  the  disregard  of  these  laws  becomes  the  in- 
strument of  blackmail  and  bribery. 

The  same  political  superstition  pervades  the  organiza- 
tion of  our  city  governments — to  construct  a  self-acting 
mechanism  which  will  secure  honesty  and  guarantee  effi- 
cient administration.  By  pitting  the  executive  against 
the  legislative  authority,  by  electing  one  official  to  exer- 
cise control  over  another,  and  by  making  official  terms  as 
short  as  possible,  we  have  beguiled  ourselves  with  the 
illusion  that  it  is  possible  to  construct  a  mechanism  of 
government  which  requires  the  attention  of  the  citizens 
only  at  stated  election  periods.  It  is  not  surprising  that 
this  search  for  a  self-acting  governmental  machine  has 
proved  fruitless,  for  it  represents  an  attempt  to  relieve 
ourselves  of  a  responsibility  which  we  cannot  throw  off. 
The  complexity  of  organization  that  has  resulted  from 
this  attempt  to  secure  efficiency  and  honesty  through 
statutes  rather  than  through  men  has  done  more  to  re- 
tard municipal  progress  than  any  other  influence. 

The  problem  presented  by  city  government  in  the 
United  States  is  not  merely  to  construct  a  well-balanced 
mechanism  of  government,  but  so  to  construct  that  gov- 


AMERICAN   DEMOCRATIC    IDEALS       205 

eminent  that  it  will  require  the  alertness  and  watchful- 
ness of  the  people.  The  situation  in  Philadelphia  is  an 
instructive  instance  of  the  effect  of  so  organizing  the 
government  as  to  leave  the  people  under  the  impression 
that  officials  are  so  encompassed  with  statutory  limita- 
tions that  they  have  little  power  for  evil.  With  a  bi- 
cameral council,  a  mayor  whose  appointments  are  sub- 
ject to  the  approval  of  the  upper  branch  of  the  local 
legislative  body,  and  such  important  services  as  the  con- 
trol of  education  vested  in  a  board  appointed  by  the  local 
judiciary,  authority  is  split  to  such  an  extent  that  the 
people  believe  that  no  one  official  or  group  of  officials 
enjoys  sufficient  power  to  work  much  harm.  We  fail 
to  appreciate  the  fact  that  this  splitting  of  authority 
means  that  harmony  can  be  secured  only  by  gathering 
these  loose  threads  in  the  hands  of  some  person  or  group 
of  persons,  who,  while  not  officially  recognized  in  the 
organization  of  government,  exercises  the  real  govern- 
mental power. 

The  foregoing  discussion  has  shown  that  industrial 
and  social  organization  in  the  United  States  is  tending 
toward  an  increasing  concentration  of  executive  and 
administrative  power,  and  that  this  movement  has  been 
accompanied  by  a  corresponding  increase  in  efficiency. 
In  the  government  of  our  municipalities  the  fear  of  ab- 
solutism has  led  us  to  offer  considerable  resistance  to  a 
plan  whose  value  is  no  longer  questioned  in  other  de- 
partments of  organized  effort.  The  half-hearted  recog- 


206  PROBLEMS  OF  CITY  GOVERNMENT 

nition  of  this  principle  has  led  to  a  series  of  makeshifts, 
which  have  failed  to  give  satisfactory  results. 

Instead  of  giving  the  mayor  complete  control  over  the 
administrative  work  of  the  city,  we  have,  in  most  cases, 
hampered  his  powers  of  appointment,  making  them  sub- 
ject to  the  approval  of  the  council.  The  unfortunate 
compromises  which  this  system  has  compelled  the  mayor 
to  make  have  been  laid  at  the  door  of  the  council,  and 
have  served  further  to  weaken  faith  in  local  representa- 
tive assemblies.  If  this  feeling  continues  to  increase  in 
intensity,  it  is  likely  to  carry  us  to  a  form  of  city  gov- 
ernment in  which  the  mayor  and  the  heads  of  executive 
departments  will  exercise  not  only  the  administrative, 
but  also  the  legislative  functions  of  the  municipality. 

The  alternative  that  presents  itself  to  the  American 
people  is  clear  and  unmistakable.  If  we  wish  to  pre- 
serve the  council,  we  must  be  prepared  to  make  three 
changes:  First,  to  deprive  it  of  all  participation  in  the 
appointment  of  executive  officials ;  secondly,  to  transform 
it  from  a  bicameral  organization  to  a  single  chamber, 
and  thirdly,  to  reduce  its  membership.  Unless  this  is 
done,  it  is  safe  to  predict  that  we  shall  gradually  move 
toward  a  system  in  which  both  executive  and  legislative 
powers  will  be  vested  in  the  mayor  and  the  heads  of 
executive  departments. 

It  is  important  for  those  who  are  interested  in  the 
betterment  of  city  government  to  realize  that  while  in 
the  organization  of  government  compromises  may  be 


AMERICAN   DEMOCRATIC    IDEALS       207 

attempted,  the  actual  operation  of  any  system  is  deter- 
mined by  deep  underlying  forces  over  which  the  indi- 
vidual has  little  control.  The  compromises  that  have 
been  dictated  by  our  unwillingness  to  accept  the  con- 
sequences of  certain  fundamental  canons  of  political 
organization  have  placed  our  city  governments  at  the 
mercy  of  a  small  group  of  men  who  understand  these 
principles  more  clearly  than  we,  and  who  are  able  to 
manipulate  this  organization  for  their  own  ends. 

The  traditional  fear  of  absolutism  need  not  deter  us 
from  making  the  mayor  the  real  executive  head  of  the 
city  government.  Correctly  interpreted,  this  plan  offers 
possibilities  of  popular  control  which  our  present  system 
lacks.  At  all  events,  it  is  well  for  us  to  understand  that 
the  demand  for  efficiency,  which  the  American  people 
place  above  their  desire  for  democratic  rule,  will  in- 
evitably lead  to  this  concentration  of  executive  power. 
The  real  alternative  is,  therefore,  whether  this  concentra- 
tion of  power  will  be  accompanied  by  the  destruction  of 
the  city  council,  or  whether  the  city  council  will  survive 
as  an  organ  of  government  restricted  to  purely  legisla- 
tive functions. 

REFERENCES 

ADDAMS,  JANE.     "Newer  Ideals  of  Peace."    New  York:  Mac- 

millan,  1907. 
BONDY,  W.     "The  Separation  of  Governmental  Powers,"  vol. 

v.     New  York :  Columbia  University  Studies. 
PICKARD,  C.  E.     "Great  Cities  and  Democratic  Institutions." 

American  Journal  of  Politics,  April,  1894. 


CHAPTER   X 

THE   RELATION    OF    THE   CITY   TO  PUBLIC   UTILITIES 

IN  the  discussion  of  the  relation  of  the  municipality 
to  quasi-public  works,  the  water,  gas,  electric-light,  and 
street-railway  services  present  the  most  important  ques- 
tions for  consideration.  While  each  involves  problems 
peculiar  to  itself,  they  have  certain  characteristics  in 
common,  due  in  part  to  the  exceptional  relation  which 
they  occupy  to  the  public  and  also  to  the  peculiar  con- 
ditions under  which  these  industries  are  conducted. 

The  English  common  law  early  in  its  development 
recognized  the  necessity  of  protecting  the  public  against 
extortionate  exactions  and  unfair  discrimination  in  cer- 
tain classes  of  industry.  To  justify  exceptional  powers 
of  control,  the  courts  invoked  three  principles,  which 
have  withstood  the  test  of  the  industrial  changes  of  the 
last  two  centuries,  and  still  remain  the  basis  upon  which 
the  relations  between  the  so-called  "  industries  affected 
with  a  public  interest  "  and  the  government  are  ad- 
justed. 

The  determination  of  the  status  of  ferries  furnished 
the  first  occasion  for  a  definite  formulation  of  the  rules 
upon  which  the  modern  doctrine  rests.  In  the  earliest 

208 


THE    CITY   AND    PUBLIC    UTILITIES      209 

cases  the  courts  dwelt  on  the  fact  that  ferries  can  be  ad- 
vantageously established  only  in  certain  places,  and  that 
the  public  is  consequently  placed  in  a  position  of  pecul- 
iar dependence  on  the  regularity  of  the  service  and  on 
the  reasonableness  of  the  price  charged  therefor.  The 
English  courts  also  emphasized  the  fact  that  the  opera- 
tion of  ferries  and  public  conveyances  is  dependent  upon 
the  use  of  public  property,  such  as  navigable  streams  or 
public  highways. 

In  these  earliest  cases  may  be  found  all  the  elements 
that  in  more  recent  times  have  placed  gas  and  electric- 
light  works,  water  works,  and  street  railways  in  a  spe- 
cial category.  In  taking  this  position  the  courts  also 
have  been  strongly  influenced  by  the  peculiar  relation 
which  industries  of  this  class  occupy  toward  the  pub- 
lic. Everyone,  no  matter  what  his  trade  or  occupation, 
is  dependent  on  the  transportation,  gas,  and  water 
services.  They  are  essential  to  the  routine  of  everyday 
life,  and  no  adequate  substitutes  are  available.  The  fact 
that  these  services  are  indispensable  to  the  great  mass 
of  the  community,  that  the  health  and  industrial  ef- 
ficiency of  the  population  depend  to  so  large  an  extent 
upon  their  efficient  performance,  has  weighed  heavily 
with  the  courts  in  giving  to  the  public  authority  ex- 
ceptional powers  of  control. 

In  addition  to  these  two  elements  of  "  monopoly  ': 
and  "  dependence  "  there  is  a  third  factor  that  gives 
to  these  industries  an  exceptional  position,  viz.,  that  the 


price  of  service  cannot  be  regulated  by  the  ordinary 
rules  of  competition.  Competition  in  the  same  territory 
is  practically  impossible.  In  the  case  of  the  street  rail- 
ways, for  instance,  endless  confusion  would  result  if 
two  companies  were  granted  franchises  over  the  s,a,jne 
highway.  It  is  true  that  there  may  be  competition  be.-.. 

-.    %i*-c 

tween  parallel  lines,  but  such  competition  is  never  fully 
effective.  Furthermore,  competition  in  this  class  of  in- 
dustries, when  it  does  exist,  is  destructive  rather  than 
regulative.  Self-preservation  demands  consolidation, 
and  periods  of  competition  are  therefore  followed  by 
combination.  That  consolidation  is  inevitable  is  attested 
by  the  history  of  the  gas,  electric-light,  water,  and  street- 
railway  companies  throughout  the  country.1 

Because,  therefore,  of  the  inherently  monopolistic 
nature  of  these  industries,  the  peculiar  dependence  of 
the  public  upon  the  services  which  they  perform  and 
the  fact  that  competition  with  regard  to  them  is  de- 
structive rather  than  regulative,  the  rules  that  deter- 
mine their  relation  to  the  public  authority  are  essen- 
tially different  from  those  that  govern  ordinary  business 
pursuits.  It  must,  furthermore,  be  borne  in  mind  that 
in  these  industries  competition  usually  results  in  dis- 
criminating charges  which  involve  the  gravest  injustice 
to  those  who  are  unable  to  secure  the  most  favorable 
rates. 

1  "Relation  of  Modern  Municipalities  to  Quasi-Public  Works." 
Publications  American  Economic  Association.     Vol.  ii,  No.  6,  1888. 


THE    CITY   AND    PUBLIC    UTILITIES      211 

The  exceptional  position  occupied  by  industries  of 
this  class  is  further  emphasized  by  the  fact  that  they 
cannot  be  carried  on  without  the  grant  of  some  public 
privilege.  The  granting  of  such  privileges  presents 
a  far  more  complex  problem  in  the  United  States  than 
in  any  of  the  countries  of  Europe,  because  under  our 
political  system  these  grants  are  safeguarded  by  a  num- 
ber of  constitutional  provisions  which  prevent  the  pub- 
lic authority  from  revoking  them  at  will,  whereas  in 
Europe  a  franchise  once  granted  is  nothing  more  than 
a  license  or  privilege  revocable  at  the  will  of  the  fran- 
chise-granting authority.  The  provisions  of  the  Fed- 
eral Constitution  forbidding  a  state  to  impair  the  obli- 
gation of  contracts,  or  to  deprive  any  person  of  life, 
liberty,  or  property  without  due  process  of  law,  have 
been  constantly  invoked  to  prevent  the  public  author- 
ity from  resuming  control  of  public  rights  and  privi- 
leges. The  first  effect  of  these  constitutional  provisions 
was  to  place  the  municipalities  of  the  country  at  the 
mercy  of  corporations  exercising  functions  of  a  quasi- 
public  nature,  because  franchises  when  once  granted 
were  viewed  as  contracts  between  the  corporation  and 
the  municipality.  Any  attempt  on  the  part  of  the 
municipality  to  place  additional  duties  on  the  public- 
service  companies  was  construed  as  an  impairment  of 
the  obligation  of  such  contract. 

The  inconvenience  and  dangers  resulting  from  this 
situation  led  most  of  the  states  to  insert  in  their  con- 


212      PROBLEMS    OF    CITY    GOVERNMENT 

stitutions  provisions  which  give  to  the  state  legislatures 
the  power  to  alter,  amend,  and  repeal  all  charters 
granted  to  private  corporations.  Under  this  reserved 
power  a  state  may  terminate  a  monopoly  or  it  may  revoke 
an  exemption  from  taxation  which  has  been  granted. 

The  concept  of  monopoly  which  the  courts  have  had 
in  mind  has  not  been  monopoly  secured  by  combinations 
of  individual  manufacturers,  but  monopoly  that  grows 
out  of  natural  or  physical  conditions.  They  have  rec- 
ognized the  fact  that  there  are  certain  industries  car- 
ried on  under  conditions  which  will  not  permit  of 
competition,  industries  in  which  the  physical  conditions 
under  which  the  services  are  offered  are  such  that  rivalry 
in  the  same  territory  is  practically  impossible.  As  the 
court  said  in  Munn  vs.  Illinois  :  *  "  When  one  devotes 
his  property  to  a  use  in  which  the  public  has  an  inter- 
est, he  in  effect  grants  to  the  public  an  interest  in  that 
use,  and  must  submit  to  be  controlled  by  the  public  for 
the  common  good  to  the  extent  of  the  interest  that  he 
has  thus  created." 

The  street  railway,  the  gas,  and  the  water  services  are 
monopolistic  because  of  the  physical  conditions  under 
which  these  industries  are  carried  on.  The  public  au- 
thority has  the  power  to  fix  the  charges  which  the  com- 
panies shall  be  permitted  to  make.  The  doctrine  in  its 
earliest  form  as  laid  down  in  Munn  vs.  Illinois  was  that 
the  legislature  has  the  right  to  fix  the  charges,  and  its 

>94  United  States,  113. 


THE    CITY   AND    PUBLIC    UTILITIES      213 

decision  is  not  subject  to  review  by  the  courts.  This  doc- 
trine was  subsequently  modified  in  Stone  vs.  the  Farm- 
ers' Loan  and  Trust  Company,1  the  Supreme  Court  of 
the  United  States  holding  that  the  regulation  of  charges 
cannot  be  used  as  a  cloak  for  the  confiscation  of  prop- 
erty ;  in  other  words,  the  regulation  must  be  reasonable. 
Endless  difficulties  have  presented  themselves  as  to  what 
constitutes  a  reasonable  charge;  in  fact,  the  enforce- 
ment of  this  doctrine  has  compelled  the  courts  to  con- 
stitute themselves  examiners  of  the  accounts  of  railroad 
and  other  public-service  corporations. 

The  greatest  difficulty  that  presents  itself  in  the 
judicial  determination  of  the  reasonableness  of  rates  is 
to  do  justice  both  to  the  public  and  to  the  stockholder. 
If  the  courts  accept  the  nominal  capitalization  of  these 
companies,  they  often  will  be  led  to  permit  a  higher 
charge  than  a  fair  return  on  the  actual  investment 
would  require.  On  the  other  hand,  if  the  actually  in- 
vested capital  of  the  enterprise  be  made  the  basis  of  cal- 
culation, a  large  number  of  innocent  stockholders  will 
find  the  value  of  their  stock  considerably  reduced. 

Neither  the  state  legislatures  nor  the  local  authori- 
ties have  made  wide  use  of  this  power,  due  in  part  to 
the  far-reaching  influence  of  the  public-service  corpora- 
tions in  local  politics.  The  Legislature  of  Illinois  in 
1891  prescribed  the  maximum  water  rates  to  be  charged 
in  cities.  In  the  same  year  the  New  York  Legislature 

1  116  United  States,  307. 
15 


214      PROBLEMS    OF    CITY    GOVERNMENT 

fixed  the  price  of  gas  for  public  lighting  and  vested  in 
a  state  commission  the  power  to  prescribe  the  price  for 
private  lighting. 

The  power  of  municipal  authorities  over  the  charges 
of  public-service  corporations  has  been  curtailed  by  the 
fact  that  in  many  instances  the  franchise  grant  specifies 
the  cost  of  service.  When  this  is  done  the  courts  are 
inclined  to  regard  such  charges  as  an  essential  element 
of  the  contract,  preventing  subsequent  reductions  with- 
out the  consent  of  the  company.  Thus  in  many  of  the 
cities  of  Pennsylvania  the  original  street-railway  fran- 
chises stipulated  not  only  the  rate  of  fare,  but  also 
required  the  companies  to  do  a  certain  amount  of  street 
paving  and  to  pay  a  license  fee  for  each  car.  The  Su- 
preme Court  of  Pennsylvania  has  taken  the  view  that 
the  return  which  the  companies  were  required  to  make 
was  prescribed  with  the  understanding  that  they  were 
to  be  permitted  to  charge  a  certain  rate  of  fare,  and 
therefore  any  attempt  to  place  additional  burdens  upon 
the  companies,  either  by  lowering  the  rate  or  by  the 
imposition  of  further  obligations,  is  in  violation  of  the 
contract  between  the  companies  and  the  state. 

When,  therefore,  franchises  are  granted  to  com- 
panies engaged  in  industries  of  a  quasi-public  nature, 
and  no  further  stipulations  are  inserted,  the  public 
authority  enjoys  the  right  to  fix  the  charges  with  the 
limitation  that  the  charges  so  fixed  shall  be  reasonable. 
Where,  however,  in  return  for  the  franchise  the  com- 


THE    CITY    AND    PUBLIC    UTILITIES      215 

pany  agrees  to  perform  certain  services  or  to  make 
certain  money  payments,  and  it  is  specifically  stated 
that  the  right  to  charge  a  certain  rate  is  granted  in 
return  for  such  services  or  money  payment,  a  contract- 
ual relation  between  the  public  authority  and  the  com- 
pany arises  which  cannot  be  impaired  by  subsequent 
legislation. 

Leaving  aside  for  the  moment  the  question  of  mu- 
nicipal ownership  and  operation,  let  us  consider  briefly 
the  relation  of  the  city  to  these  services  when  performed 
by  private  corporations.  It  is  clear  that  the  mere  fact 
of  the  grant  of  public  privileges,  whether  it  be  the  right 
to  occupy  the  public  highway,  to  lay  pipes  under  the 
highway,  or  to  place  wires  overhead,  entitles  the  public 
to  some  return,  either  financial  or  otherwise,  and  the 
first  question  which  local  authorities  are  called  upon 
to  decide  is  the  form  which  this  return  shall  take. 

This  question  may  be  viewed  from  two  different 
.standpoints — the  fiscal  and  the  social.  Shall  the  com- 
munity exact  a  money  return  or  shall  it  demand  that 
the  return  be  made  in  improved  service  and  in  lower 
cost  of  service  to  the  consumer?  This  question  is  too 
often  discussed  with  sole  reference  to  the  money  return 
for  public  franchises  without  regard  to  the  larger  ques- 
tion involved  in  the  effect  of  the  service  on  the  social 
life  and  industrial  efficiency  of  the  community. 

In  the  adjustment  of  the  relation  between  corpora- 
tions performing  quasi-public  functions  and  the  munici- 


216      PROBLEMS    OF    CITY    GOVERNMENT 

pality,  two  purposes  have  been  kept  in  view,  first  to 
secure  a  financial  return  for  the  franchise,  and  secondly 
to  maintain  control  over  the  service.  In  some  cases  an 
attempt  has  been  made  to  limit  the  profits  which  these 
corporations  may  secure  and  to  require  a  division  of 
profits  with  the  municipality.  This  plan  is  now  but 
rarely  used  in  the  United  States.  It  was  most  common 
in  the  early  grants  of  street-railway  franchises  in  Phila- 
delphia, which  provided  that  whenever  the  profits  of 
the  companies  exceeded  six  per  cent  they  should  pay 
into  the  city  treasury  six  per  centum  of  the  excess.  The 
cardinal  defect  of  any  system  involving  a  participation 
in  profits  is  the  lack  of  adequate  control  over  the  ac- 
counting of  public-service  corporations. 

A  provision  common  to  franchise  grants  both  in 
American  and  European  cities  is  the  determination  of 
the  maximum  charge  to  the  consumer.  The  grave  de- 
fect of  this  plan,  unless  the  charges  are  subject  to 
periodical  revision,  is  that  at  the  outset  the  charge 
must  be  sufficient  to  enable  the  company  to  make  a  fair 
profit.  With  each  improvement  in  operation  this  maxi- 
mum charge  becomes  an  increasing  burden  to  the  con- 
sumer and  gives  rise  to  a  demand  for  further  regulation 
of  price,  which  in  some  cases  is  made  difficult  by  reason 
of  constitutional  limitations. 

The  most  perplexing  problems  that  have  confronted 
American  municipalities  in  the  regulation  of  charges 
are  traceable  to  the  lack  of  effective  control  over  cor- 


THE    CITY    AND    PUBLIC    UTILITIES      217 

porate  capitalization.  The  moment  the  door  is  opened 
to  inflated  capitalization,  charges  cannot  be  reduced 
without  confiscating  the  property  of  innocent  holders 
of  stock.  The  close  connection  between  these  two  forms 
of  control — control  over  capitalization  and  control  over 
charges — has  led  some  of  our  states,  notably  Massachu- 
setts, to  establish  careful  supervision  over  the  capitali- 
zation of  public-service  companies.  It  is  true  that  this 
step  was  taken  after  a  long  period  of  unregulated  capi- 
talization, and  of  course  the  system  can  have  no  retro- 
active effect,  but  it  has  established  a  basis  for  future 
regulation  which  will  guarantee  to  the  public  better 
treatment  than  is  possible  under  the  system  of  unregu- 
lated capitalization. 

Another  factor  in  strengthening  the  control  of  the 
public  authorities  over  public-service  corporations  is  the 
reserved  right  of  purchase  of  the  plant.  This  plan  has 
failed  to  produce  the  best  results,  owing  to  the  limi- 
tations on  the  borrowing  powers  of  municipalities, 
which  in  most  cases  prevent  the  large  expenditure 
which  the  purchase  of  a  street  railway,  gas,  or  water 
system  involves.  For  instance,  had  the  city  of  Phila- 
delphia decided  in  1907  to  take  over  the  gas  works  from 
the  company  to  which  it  is  at  present  leased,  it  would 
have  had  to  pay  for  all  improvements  plus  simple  inter- 
est. During  the  ten  years  since  the  leasing  of  the 
works  the  gas  company  has  spent  over  $15,000,000  in 
extensions  and  improvements,  the  payment  of  which 


218     PROBLEMS    OF    CITY   GOVERNMENT 

would  have  carried  the  city  beyond  its  constitutional 
debt  limit. 

The  gradual  shortening  of  franchise  terms  has  also 
contributed  toward  strengthening  the  control  of  the 
local  authorities  by  permitting  at  stated  intervals  a 
complete  readjustment  of  the  relation  between  the  city 
and  the  companies.  The  earliest  grants  were  made  for 
indefinite  periods,  and  were  therefore  practically  per- 
petual. This  system  presented  the  very  grave  difficulty 
that  the  public  authority  could  not  impose  new  obliga- 
tions, such  as  the  extension  of  lines  or  the  lowering  of 
the  cost  of  service.  To  remedy  this  evil  the  duration 
of  franchise  grants  has  been  gradually  reduced  until 
in  some  states,  notably  in  New  York,  the  maximum 
grant  for  street  railways  is  twenty-five  years  for  sur- 
face lines  and  fifty  years  for  underground  lines.1 


THE   GAS   SERVICE 

The  wide  extension  of  municipal  ownership  and 
operation  of  gas  plants  in  Great  Britain  renders  pos- 
sible some  instructive  comparisons  between  public  and 
private  management.  The  testimony  published  by  the 
Municipal  Ownership  Commission  of  the  National  Civic 
Federation  shows  that  the  total  average  receipts  per 
thousand  cubic  feet  of  gas  sold  in  270  municipal 

1  Cf.  "Charter  of  the  Greater  New  York,"  Chap.  Ill,  sec.  73. 


THE    CITY   AND   PUBLIC   UTILITIES      219 

plants  reporting  for  1905-06  were  76.4  cents  as 
compared  with  83.9  cents  for  the  482  private  com- 
panies. The  figures  for  27  municipal  and  36  private 
plants  in  1905-06  were  72.1  cents  and  78.9  cents  per 
thousand  cubic  feet  respectively,  a  result  which,  after 
deducting  one  fourth  the  gross  receipts  for  residuals 
and  miscellaneous  receipts,  shows  an  advantage  of 
municipal  over  private  management  of  5.1  cents  per 
thousand.1 

Private  companies  in  London  furnished  gas  at  from 
58  cents  to  88  cents  per  thousand  cubic  feet,  and  in 
Liverpool  at  60  cents  per  thousand  cubic  feet.  In 
Birmingham,  where  the  gas  works  are  municipally 
owned  and  operated,  gas  is  furnished  to  the  consumer 
on  a  sliding  scale  ranging  from  44  cents  to  60  cents  per 
thousand  cubic  feet,  according  to  the  amount  consumed. 
The  municipal  plant  of  Manchester  furnishes  gas  of 
17.6  candle  power  at  54f  cents,  and  Glasgow  provides 
gas  of  18.2  candle  power  at  50  cents  per  thousand  cubic 
feet.  The  only  private  plant  which  furnishes  gas  at 
a  low  rate  is  in  Sheffield,  where  gas  is  furnished  on 
a  sliding  scale  ranging  from  28  cents  to  36  cents 
per  thousand  cubic  feet,  according  to  the  amount  con- 
sumed. 

In  1906  there  were  270  towns  in  Great  Britain  owning 

1 "  Municipal  and  Private  Operation  of  Public  Utilities,"  Part  I, 
vol.  i,  National  Civic  Federation  Report,  1907,  p.  212,  quoting 
Field's  "  Analysis." 


220     PROBLEMS    OF    CITY    GOVERNMENT 

and  operating  gas  works,  an  increase  of  122  since  1882. 
That  the  municipal  undertakings  are  in  favored  posi- 
tions is  indicated  by  the  fact  that  the  270  municipal 
undertakings  sold  57,754,403,956  cubic  feet  of  gas  to 
1,945,777  customers,  whereas  the  482  private  companies 
sold  93,923,289,511  cubic  feet  to  2,385,348  customers, 
that  is  to  say,  there  are  nearly  twice  as  many  private 
companies  as  municipal  undertakings,  but  the  number 
of  consumers  is  but  30  per  cent  greater. 

The  experience  of  British  cities  has  shown  that  un- 
der municipal  management  it  is  possible  to  keep  certain 
broader  social  ends  in  view,  adjusting  the  price  of  gas 
not  merely  to  secure  the  largest  possible  financial  return, 
but  also  to  secure  improvement  in  the  social  condition 
of  the  community.  To  appreciate  the  extent  of  the 
service  performed  by  the  town  authorities,  it  is  neces- 
sary to  bear  in  mind  that  the  use  of  gas  by  the  work- 
ing classes  in  Great  Britain  is  far  less  general  than  in 
the  United  States.  British  municipal  works  have  done 
much  to  extend  its  use  through  the  introduction  of  the 
slot  meter.  In  the  larger  cities  private  companies  have 
also  introduced  this  system  on  a  large  scale.  The  ex- 
tension of  the  use  of  gas  for  lighting,  and  especially 
for  cooking  purposes,  works  far-reaching  changes  in  the 
habits  of  the  people.  One  of  the  most  noticeable  effects 
is  on  the  standard  of  living.  The  gas  stove  becomes  the 
means  of  introducing  a  larger  variety  of  cooked  foods 
into  the  diet  of  the  people. 


THE    CITY    AND    PUBLIC    UTILITIES       221 

In  the  United  States  there  are  twenty-five  munici- 
palities that  are  furnishing  gas  through  municipal 
plants.  Since  the  leasing  of  the  Philadelphia  gas 

MUNICIPAL  GAS  PLANTS  IN  THE  UNITED  STATES,  1906  * 

OUTPUT  (FEET) 

Holyoke,  Mass 136,970,000 

Middleboro,  Mass 1,874,600 

Wakefield,  Mass 25,000,000 

Wcstfield,  Mass 18,150,500 

Norwich,  Conn 40,000,000 

Bellefontaine,  Ohio 40,000,000 

Hamilton,  Ohio 73,000,000 

Escanaba,  Mich 1,200,000 

Duluth,  Minn 151,000,000 

W.  Minneapolis,  Minn 1,594,450 

Dell  Rapids,  S.  Dak 1,838,000 

De  Smet,  S.  Dak 2,000,000 

Rich  Hill,  Mo 3,000,000 

Gilroy,  Cal 4,000,000 

Alexandria,  Va 44,000,000 

Charlottesville,  Va 19,000,000 

Danville,  Va 42,000,000 

Fredericksburg,  Va 8,834,000 

Richmond,  Va 410,000,000 

Wheeling,  W.  Va 116,000,000 

Cartersville,  Ga 6,300,000 

Dalton,  Ga 9,000,000 

Talladega,  Ala 5,000,000 

Henderson,  Ky 23,000,000 

Total 1,182,761,550 

works,  the  largest  city  operating  a  gas  plant  is  Rich- 
mond, Va.,  where  municipal  operation  was  established 

1  Report  of  Municipal  Ownership  Commission,  National  Civic 
Federation,  Part  I,  vol.  i,  p.  146. 


222      PROBLEMS    OF    CITY    GOVERNMENT 

in  1852.  Although  the  experience  with  this  plant  has 
been  satisfactory  in  most  respects,  the  policy  of  the 
local  council  is  open  to  the  same  criticism  as  was  the 
Philadelphia  management.  There  is  a  constant  tend- 
ency to  use  the  profits  for  the  reduction  of  the  tax 
rate  rather  than  for  the  improvement  of  the  plant.  A 
report  of  expert  accountants,  on  the  basis  of  an  audit 
of  the  books  in  1906,  showed  that  not  only  had  the 
works  been  paid  for  out  of  earnings,  but  that  a  surplus 
of  $1,500,000  had  been  turned  into  the  city  treasury.1 


THE   ELECTRIC-LIGHT   SERVICE 

Municipal  ownership  and  operation  has  made  more 
rapid  advance  in  the  electric-light  service  than  in  the 
gas  service.  Much  interesting  information  on  this  point 
is  contained  in  the  special  report  of  the  United  States 
census  on  central  electric-light  and  power  plants  pub- 
lished in  1902.  The  figures  there  given  show  that  22.5 
per  cent,  or  815  out  of  a  total  of  3,620  electric-light 
plants,  are  publicly  owned  and  operated.  It  is,  further- 
more, a  significant  fact  that  of  the  574  electric-light 
plants  established  before  1899,  but  68,  or  11.4  per  cent, 
were  municipal,  while  of  the  total  of  1,502  plants  estab- 
lished between  1899  and  1906,  318,  or  21.2  per  cent,  are 
publicly  owned  and  operated.2 

1  Report  of  Municipal  Ownership  Commission,  National  Civic 
Federation,  Part  I,  vol.  i,  p.  148.  2  Ibid.,  p.  161. 


THE    CITY   AND    PUBLIC    UTILITIES      223 

The  movement  for  municipal  ownership  of  electric- 
light  plants  is  more  noticeable  in  the  smaller  towns 
than  in  the  larger  cities.  Thus  the  census  shows  that 
82.3  per  cent  of  the  municipal  plants  are  located  in 
towns  of  less  than  5,000  inhabitants,  whereas  but  72.8 
per  cent  of  the  private  plants  are  located  in  cities  of 
this  size.  Furthermore,  but  28  per  cent  of  the  total 
number  of  municipal  plants  are  in  cities  of  25,000  or 
over,  whereas  84  per  cent  of  the  private  plants  are 
located  in  such  cities.  In  the  84  cities  with  a  popula- 
tion of  50,000  or  over,  but  7  have  municipal  plants, 
namely,  Chicago,  Allegheny,  Detroit,  Columbus,  Seattle, 
Nashville,  and  Grand  Rapids.  Of  these  Seattle  is  the 
only  city  in  which  the  electric-light  plant  does  commer- 
cial as  well  as  public  lighting.  In  the  67  cities  having  a 
population  of  more  than  30,000  and  less  than  50,000  in- 
habitants, there  are  but  8  municipal  plants.  Of  these 
Holyoke  and  Taunton,  Mass.,  Jacksonville,  Fla.,  and 
Tacoma,  Wash.,  do  commercial  as  well  as  public  light- 
ing, whereas  the  municipal  plants  of  Springfield,  111., 
Lincoln,  Neb.,  Galveston,  Texas,  and  Joplin,  Mo.,  confine 
themselves  to  public  lighting.  In  the  151  cities  of  over 
30,000  inhabitants,  there  were  in  1904  but  15  municipal 
plants.  The  remaining  800  were  all  situated  in  cities 
of  less  than  30,000.* 

The  relative  importance  of  the  municipal  and  the 

1  Report  of  Municipal  Ownership  Commission,  National  Civic 
Federation,  Part  I,  vol.  i,  p.  163. 


224      PROBLEMS    OF    CITY    GOVERNMENT 


private  plants  is  shown  in  the  accompanying  table,  in 
Avhich  the  dynamo  capacity  of  each  group  is  indicated. 


HORSE  POWER  CAPACITY 
OF  DYNAMOS 

TOTAL, 

PRIVATE 
STATIONS 

MUNICIPAL, 
STATIONS 

Num- 
ber 

Per 
Cent 

Num- 
ber 

Per 

Cent 

Num- 
ber 

Per 

Cent 

Total      

3,620 

100.0 

2,805 

100.0 

815 

100.0 

Under  200  

2,262 
864 
226 
137 
83 
48 

62.5 
23.9 
6.2 
3.8 
2.3 
1.3 

1,650 
700 
201 
126 

81 
47 

58.8 
24.9 
7.2 
4.5 
2.9 
1.7 

612 
164 
25 
11 
2 

1 

75.1 
20.1 
3.1 
1.4 
0.2 
0.1 

200  but  under  500  . 

500  (under  1,000). 

1,000  (under  2,000)  .... 
2,000  (under  5,000)  .... 
5.000  and  over.  . 

The  tendency  of  municipal  plants  to  furnish  light 
and  power  for  commercial  as  well  as  for  public  purposes 
is  far  more  marked  in  the  smaller  towns  than  in  the 
large  cities.  Of  the  815  municipal  plants,  all  but  77 
are  selling  current  to  private  consumers. 

The  following  table  shows  the  distribution  of  munic- 
ipal plants  l  in  cities  of  different  size  in  1902 : 


POPULATION  OF  PLACES 
IN  WHICH  LOCATED 

TOTAL 

PRIVATE 
STATIONS 

MUNICIPAL 
STATIONS 

Num- 
ber 

Per 

Cent 

Num- 
ber 

Per 

Cent 

Num- 
ber 

Per 

Cent 

Total  

3,620 

100.0 

2,805 

100.0 

815 

100.0 

Under  5,000  

2,714 
675 

128 

73 
30 

75.0 
18.7 

3.5 

2.0 
0.8 

2,043 
554 

115 

67 
26 

72.8 
19.8 

4.1 

2.4 
0.9 

671 
121 

13 

6 
4 

82.3 
14.9 

1.6 

0.7 
0.5 

5,000  but  under  25,000 
25.000  but  under  100,- 
000  

100,000      but       under 
500  000       

500  000  and  over 

1  Report  Bureau  of  the  Census  on  "Central  Electric  Light  and 
Power  Stations,"  p.  10. 


THE   CITY   AND   PUBLIC   UTILITIES      225 

THE   STREET-RAILWAY   SERVICE 

(a)  British  Experience 

In  the  adjustment  of  the  relation  between  the  mu- 
nicipality and  the  street-railway  service,  the  experience 
of  the  British  cities  during  the  last  twenty  years  con- 
tains much  of  interest  and  value.1  The  rapid  extension 
of  municipal  ownership  and  operation  is  not  traceable 
to  any  preconceived  theories  regarding  the  proper 
sphere  of  municipal  action,  but  to  the  difficulties  en- 
countered in  the  attempt  to  secure  efficient  service  from 
private  companies.  The  short-term  franchises  made  it 
difficult,  if  not  impossible,  for  the  British  street-rail- 
way companies  to  undertake  improvements  on  a  large 
scale.  With  each  demand  for  the  extension  of  the  service 
to  the  suburban  districts  the  question  presented  itself 
whether  such  extension  could  be  made  to  pay,  in  view 
of  the  comparatively  short  duration  of  the  franchise. 
Endless  controversies  arose  between  the  municipalities 
and  the  companies,  which  finally  forced  a  clear-cut  issue 
— either  to  permit  the  companies  wider  freedom  of  ac- 
tion and  longer  franchise  terms,  or  to  accept  the  alter- 
native of  municipal  ownership.  The  traditions  of  rigid 
public  control  over  private  companies  were  so  strong, 
and  the  reluctance  to  grant  long-term  franchises  so 
great,  that  municipal  ownership  was  adopted  as  the 
only  solution  of  the  difficulty. 

1  For  discussion  of  the  experience  of  German  cities,  see  Chapter 
XIII. 


226     PROBLEMS    OF    CITY   GOVERNMENT 

During  the  last  ten  or  twelve  years  this  movement 
has  acquired  great  momentum.  In  1894  but  three  Brit- 
ish cities  owned  and  operated  their  street  railways;  in 
1906  the  number  had  increased  to  123.  Fifty-seven  per 
cent  of  the  street  railways  of  the  United  Kingdom  are 
now  operated  by  public  authorities.1  In  spite  of  the 
criticism  of  the  opponents  of  municipal  ownership, 
there  is  no  doubt  as  to  the  general  feeling  of  satisfac- 
tion with  which  the  people  of  the  cities  concerned  view 
the  results  accomplished  under  municipal  operation,  not 
only  because  of  the  improved  service,  but  mainly  be- 
cause of  the  important  contributions  which  the  local 
authorities  have  been  able  to  make  to  the  social  welfare 
of  the  working  classes  through  the  extension  of  the  serv- 
ice into  outlying  districts.  For  reasons  already  stated 
it  seemed  impossible  to  secure  this  end  under  private 
management. 

In  judging  of  the  success  of  municipal  management 
in  Great  Britain,  this  is  the  most  important  factor  to 
be  considered.  British  municipalities  have  suffered  se- 
verely from  the  congestion  of  population  incident  to 
the  lack  of  adequate  transportation  facilities.  In  secur- 
ing a  more  equable  distribution  of  population  through 
a  readjustment  of  street-railway  fares  and  a  liberal 
policy  in  the  extension  of  lines,  British  municipalities 
have  not  only  improved  the  health,  but  have  also  in- 

1  "British  Tramways,"  by  Prof.  Frank  Parsons,  National  Civic 
Federation  Report,  Part  I,  vol.  i,  p.  261. 


THE    CITY   AND    PUBLIC    UTILITIES      227 

creased  the  industrial  efficiency  of  the  population. 
The  Board  of  Trade  returns,  according  to  the  report 
of  Professor  Parsons,  show  that  the  annual  rate  of  ex- 
tension of  lines  under  municipal  operation  has  been 
from  five  to  fifty  times  greater  than  under  private 
operation. 

The  financial  results  have  also  been  most  satisfac- 
tory. Immediately  after  taking  over  the  street-railway 
system,  Glasgow  reduced  fares  thirty-three  and  one  third 
per  cent  and  increased  the  length  of  rides.1  In  all  cities 
in  which  municipal  operation  was  introduced  the  mini- 
mum fare  has  been  reduced  from  two  cents  to  one  cent. 
Comparing  the  average  distance  that  may  be  traveled 
for  two  cents,  we  find  that  under  municipal  manage- 
ment the  distance  varies  from  two  to  two  and  a  half 
miles,  whereas  under  company  management  it  is  but 
one  mile.  Municipal  authorities  have  also  made  great 

1  National  Civic  Federation  Report,  Part  I,  vol.  i,  p.  267. 

"In  Glasgow  fares  were  reduced  about  thirty-three  per  cent  soon 
after  the  city  took  the  lines,  and  fifty  per  cent  a  few  years  later. 
In  Manchester  public  management  reduced  fares  fifty  per  cent,  in 
Leeds  about  forty  per  cent,  in  Sheffield  sixty  per  cent,  in  Liverpool 
fifty  to  sixty-six  per  cent,  and  on  long  routes  much  more  than  this. 
The  company  fare  from  the  center  to  the  suburb  was  twelve  cents, 
while  the  city  made  four  cents  the  maximum  fare  on  the  same 
routes.  In  Glasgow  the  average  distance  for  one  pence  is  two  and 
one  third  miles  against  one  mile  for  the  company.  Sheffield  gives 
an  average  of  two  and  one  hah*  miles  for  one  pence.  The  shortest 
penny  route  is  two  miles  and  the  longest  three  and  a  half  miles. 
Under  the  company  regime  the  fare  was  one  pence  a  mile.  The 
traveler  gets  more  for  two  cents  on  the  municipal  trams  than  he 
would  have  had  to  pay  five  cents  for  on  the  company's  cars." 


228     PROBLEMS    OF   CITY    GOVERNMENT 


improvements  in  the  service,  especially  in  the  frequency 
with  which  cars  are  run. 

It  has  often  been  charged  that  the  system  of  street- 
railway  accounting  in  British  cities  is  defective,  and 
tends  to  show  a  fictitious  rather  than  a  real  surplus. 
In  every  case  these  charges  have  been  proven  to  be 
untrue.  The  accounts  of  municipal  street-railway  un- 
dertakings are  made  to  conform  to  all  the  requirements 
of  sound  business  management.  Not  only  do  the  cities 
make  provision  for  the  ordinary  depreciation  of  the 
plant,  but  also  for  the  contingency  that  constantly  faces 
these  enterprises,  viz.,  the  substitution  of  new  and  more 
economic  methods  of  traction  which  may  render  the  old 
plant  obsolete.  In  fact,  municipal  accounting  conforms 

DEPRECIATION,  RENEWALS,  AND  RESERVES  l 


DEPRECIATION 
AND  RENEWALS 
FUND 

RESERVES 

AND  SURPLUS 

TOTALS 

Glasgow         

$3,888,185 

$162,950 

$4,051,135 

Manchester        

925,430 

318,370 

1,243,800 

Liverpool  

1,355,095 

220,945 

1,576,040 

London,  C.  C  

320,255 

35,270 

355,525 

Total  

$6,488,965 

$737,535 

$7,226,500 

London  United 

$80,580 

$80,580 

Dublin,  United 

$12,500 

140,535 

153,035 

Norwich  

23,975 

23,975 

Total  

$12,500 

$245,090 

$257,590 

1  Cf.  Report  National  Civic  Federation,  Part  I,  vol.  i,  p.  276. 


THE    CITY   AND    PUBLIC    UTILITIES      229 

more  closely  to  sound  business  standards  than  cor- 
porate accounting.  Few  private  companies  in  Great 
Britain  make  adequate  provision  for  depreciation  and 
renewal. 

British  cities  are  required  to  provide  for  the  repay- 
ment within  thirty  years  of  any  indebtedness  contracted 
for  the  purchase  or  construction  of  lines,  an  obligation 
which  does  not  rest  upon  the  private  companies.  The 
law  furthermore  requires  cities  to  pay  on  street-railway 
lines  owned  by  them  the  same  taxes  as  private  com- 
panies. The  amounts  thus  paid  in  1904  were  as  fol- 
lows : l 

Leeds $253,058 

Liverpool 156,122 

Salford 58,398 

Hull 55,965 

Manchester 243,325 

Nottingham 63,265 

Glasgow  (to  Common  Good  Fund) 196,437 

In  spite  of  all  these  fixed  charges  the  municipal 
street-railway  lines  paid  large  amounts  into  the  respec- 
tive city  treasuries,  which  served  considerably  to  reduce 
the  burden  of  taxation.  The  amounts  thus  paid  in  1906 
ranged  from  $126,500  in  Liverpool  to  $250,000  in  Man- 
chester. The  question  has  been  raised  and  is  now  being 
seriously  discussed  whether  it  would  not  be  better  policy 
to  avoid  any  surplus  by  giving  the  community  the  benefit 
of  lower  fares.  The  influence  of  the  taxpayers  in  local 

>  Cf.  Howe,  "  The  British  City,"  p.  97. 
16 


230      PROBLEMS    OF    CITY    GOVERNMENT 


affairs  is  so  strong  that  the  adoption  of  this  policy  has 
not  as  yet  been  possible. 

The  reduction  in  the  tax  rate  which  the  surplus  from 
the  street-railway  lines  has  made  possible  fully  refutes 
the  assertion  so  often  made  that  the  extension  of  mu- 
nicipal ownership  has  burdened  the  British  cities  with 
abnormally  heavy  tax  rates.  A  comparison  of  the  cities 
which  have  embarked  upon  this  policy  with  those  in 
which  public  utilities  are  owned  by  private  companies 
discloses  the  significant  fact  that  as  municipal  owner- 
ship advances  the  tax  rate  declines. 

Municipal  operation  has  also  contributed  toward  im- 
proving labor  conditions.  The  working  day  has  been 

HOURS  AND  WAGES  OP  MOTORMEN  AND  CONDUCTORS  » 


HOURS 

PER 

WEEK 

SCALE  OF  PAT 

PER  WEEK 

PER  HOUR 

Maximum 

Minimum 

Maximum 

Glasgow  

54 
54 
60 
60 

57 

70 
70 
70 

70 

70 

$7.44 
7.44 
7.50 
9.00 

7.84 

9.24 
6.78 
6.72 
6.12 

7.22 

11.2    cts. 
11.24 
11.0 
11.5 

11.23 

10.80 
7.80 
8.26 
8.06 

8.73 

13.9    cts. 
13.74 
12.50 
15.0 

13.78 

13.20 
10.50 
9.50 

8.74 

10.48 

Manchester  

Liverpool  

London,  C.  C  

Municipalities  

London,  United  

Dublin,  United  

Norwich     

Bristol  

Companies   

1  National  Civic  Federation  Report,  Part  I,  vol.  i,  p.  280. 


THE    CITY   AND    PUBLIC    UTILITIES      231 

reduced.  Under  municipal  management,  motormen  and 
conductors  work  from  fifty-four  to  sixty  hours  per 
week,  whereas  they  are  compelled  to  work  seventy  hours 
under  corporate  management.  Wages  also  have  been 
increased.  The  average  wage  under  municipal  opera- 
tion ranges  from  11£  to  13^  cents  per  hour,  as  compared 
with  8f  to  10^  cents  under  private  management. 

(6)  American  Experience 

Street-railway  development  in  the  United  States  has 
far  outstripped  that  of  any  of  the  European  countries. 
The  total  trackage  in  the  United  Kingdom  in  1902  was 
but  2,336.7  miles,  or  about  one  ninth  of  the  trackage 
in  the  United  States.  The  number  of  fare  passengers 
in  the  United  States  during  the  same  year  was  4,774,- 
211,904,  as  compared  with  but  1,586,830,271  in  the 
United  Kingdom.  The  greater  frequency  of  travel  on 
street  railways  in  the  United  States  is  shown  by  the 
fact  that  the  number  of  rides  per  capita  in  urban  cen- 
ters of  4,000  inhabitants  was  but  54  in  the  United 
Kingdom,  as  compared  with  168  in  the  United  States.1 
The  contrast  with  Germany,  Italy,  France,  and  Austria 
is  even  more  striking,  indicating  the  extraordinary  de- 
velopment of  the  street-railway  service  in  the  United 
States. 

In  the  United  States  the  relation  between  the  munic- 

1  Special  Census  Report  on  "  Street  and  Electric  Railways,"  1902, 
p.  149. 


232      PROBLEMS    OF    CITY    GOVERNMENT 

ipality  and  the  street-railway  service  has  been  treated 
as  if  it  were  a  part  of  the  general  railway  problem. 
The  real  analogy  is  with  the  omnibus  line  rather  than 
with  the  railroad.  The  street  railway  is  in  reality 
nothing  more  than  a  kind  of  omnibus.1  It  uses  a 
highway  that  has  been  prepared  for  it  by  the  pub- 
lic, and  in  the  view  of  the  law  the  highway  remains 
the  property  of  the  public.  It  is  true  that  at  times 
the  companies  purchase  their  right  of  way  in  subur- 
ban districts,  but  this  is  the  exception  rather  than 
the  rule.2 

In  the  adjustment  of  the  relation  between  the  mu- 
nicipality and  the  street-railway  service,  one  of  four 
possible  plans  may  be  adopted :  First,  private  ownership 
and  operation;  second,  public  ownership  of  the  track 
and  private  ownership  and  operation  of  rolling  stock; 
third,  public  ownership  and  operation  of  track  and  roll- 
ing stock;  and  finally,  public  ownership  of  track  and 
rolling  stock  with  private  operation.  Throughout  the 
United  States  the  general  rule  is  the  private  owner- 
ship of  both  the  track  and  the  vehicle.  In  some  of  the 
German  and  English  cities  the  municipality  maintains 
the  ownership  and  control  of  the  highway  and  the  track, 

1  This  analogy  is  fully  discussed  in  the  report  of  the  Massachusetts 
Railway  Commission  appointed  in  1894  to  report  on  the  status  of  the 
street-railway  problem. 

2  As  the  electric  roads  have  pushed  into  suburban  and  rural 
districts  they  resemble  more  nearly  the  steam  railroad.     In  many 
cases  they  are  now  purchasing  their  right  of  way. 


THE    CITY    AND    PUBLIC    UTILITIES      233 

leaving  the  operation  of  the  road  to  a  private  company. 
Instances  of  the  third  relationship  are  to  be  found  in  a 
number  of  German  cities. 

In  the  granting  of  street-railway  franchises  there 
is  noticeable  an  increasing  number  of  constitutional  and 
statutory  limitations  designed. 

First,  to  prevent  the  state  legislature  from  granting 
such  franchises  without  the  consent  of  the  local  au- 
thorities of  the  district  in  which  the  lines  are  to  be 
constructed.  Thus  the  Constitution  of  Pennsylvania 
provides  that  no  rights  over  the  highways  of  any  mu- 
nicipality shall  be  granted  by  the  State  Legislature 
without  the  consent  of  the  local  authorities. 

Secondly,  statutory  requirements  guaranteeing  to 
municipalities  a  certain  minimum  return  for  street- 
railway  franchises.  The  laws  of  Kentucky,  Virginia, 
California,  and  Nevada  require  that  franchises  be  of- 
fered at  public  competition,  although  no  indication  is 
given  as  to  the  basis  for  such  competition.  The  legis- 
lation of  New  York  and  Louisiana  furnishes  such  basis 
by  requiring  that  the  bids  be  based  on  percentage  of 
gross  annual  earnings.1  The  system  which  best  meets 
modern  requirements  is  that  adopted  in  Ohio,  under 
which  competition  is  made  to  inure  to  the  benefit  of 

1  The  charter  of  the  City  of  New  York  exempts  the  city  from  this 
provision  of  the  General  Railroad  Law,  but  maintains  the  ap- 
plicability of  §  95  of  the  Railroad  Law,  which  requires  every  grantee 
of  a  railway  franchise  to  pay  three  per  cent  of  the  gross  receipts 
during  the  first  five  years  and  five  per  cent  thereafter. 


234  PROBLEMS  OF  CITY  GOVERNMENT 

the  people  by  requiring  that  franchises  be  granted  to 
the  bidder  who  submits  the  lowest  rate  of  fare. 

The  system  of  awarding  franchises  by  public  com- 
petition has  not  fulfilled  expectations.  This  is  due 
mainly  to  the  fact  that  franchises  are  at  present  sought 
for  the  extension  of  existing  lines,  and,  as  a  rule,  such 
extensions  can  only  be  made  profitable  to  the  company 
controlling  such  lines.  Where  the  extension  is  valuable 
to  competing  companies  the  percentage  bid  is  usually 
advanced  to  a  point  which  makes  the  construction  of 
the  line  practically  impossible.  Thus  in  one  case  in  New 
York  City  the  bidding  resulted  in  an  offer  of  seventy 
times  the  gross  receipts  of  the  proposed  new  line.  In 
another  case  one  hundred  per  cent  was  offered.  At  the 
present  time  there  is  but  one  line  in  New  York  City — 
the  Metropolitan  Crosstown  Railway — which  has  been 
constructed  under  a  competitive  franchise.  This  line 
is  paying  eight  per  cent  of  the  gross  receipts  into  the 
city  treasury. 

Third,  statutory  provisions  assuring  to  the  people 
some  control  over  the  granting  of  franchises.  In  Mon- 
tana, Nebraska,  and  Arizona  the  law  requires  that  all 
grants  be  first  submitted  by  the  local  council  to  popular 
vote.  In  Utah,  South  Dakota,  Colorado,  Indiana,  and 
Iowa,  franchises  must  be  passed  upon  by  the  people  if  a 
certain  proportion  of  the  qualified  electors  make  formal 
demand  by  petition. 

Some  of  the  states  require  that  the  consent  of  the 


THE    CITY    AND    PUBLIC    UTILITIES      235 

abutting  owners,  or  at  least  a  certain  proportion  thereof, 
shall  be  secured  before  street-railway  franchises  are 
granted.  In  Missouri,  Louisiana,  Nebraska,  New  Jer- 
sey, Ohio,  and  in  cities  of  over  40,000  in  Kansas,  the 
consent  of  the  owners  of  more  than  one  half  the  front- 
age must  be  secured.  The  New  York  law  requires  the 
consent  of  the  owners  of  more  than  fifty  per  cent  in 
value  of  the  frontage,  but  in  case  such  assent  is  refused, 
appeal  may  be  taken  to  the  courts. 

As  regards  the  form  of  compensation  for  such  fran- 
chise privileges,  a  number  of  different  plans  have  been 
adopted.  The  earliest  and  most  usual  method  was  to 
exact  a  license  fee  for  each  car.  In  New  York  and 
Chicago  this  fee  is  fixed  at  $50  and  in  St.  Louis  at  $25. 
Until  recently  the  license  fee  in  Philadelphia  was  $50 
per  car,  but  under  a  recent  agreement  this  license  fee 
was  abolished  in  consideration  of  the  payment  of  an 
annual  lump  sum  by  the  company.  Another  form  of 
return  that  has  been  quite  usual  has  been  to  require  the 
companies  to  pave,  repair,  and  clean  the  streets  over 
which  their  lines  are  run. 

The  plan  which  is  at  present  meeting  with  most 
favor  is  to  exact  a  certain  percentage  of  the  gross 
receipts.  The  law  of  New  York  requires  that  such  pay- 
ment shall  be  a  minimum  of  three  per  cent  during  the 
first  five  years  and  five  per  cent  thereafter.  In  Rich- 
mond, Providence,  and  Newark  five  per  cent  is  exacted, 
in  Cincinnati  six  per  cent  and  in  Baltimore  nine  per 


236      PROBLEMS    OF    CITY    GOVERNMENT 

cent.  But  little  attempt  has  been  made  to  secure  com- 
pensation in  the  form  of  lower  fares,  although  it  is  be- 
coming increasingly  evident  that  this  form  of  return 
is  of  far  greater  value  to  the  people  of  the  community 
than  money  payments  into  the  city  treasury. 

In  a  surprisingly  large  number  of  instances  the  street- 
railway  companies  have  succeeded  both  in  evading  the 
money  payments  to  the  city  as  well  as  the  other  services 
which  their  contracts  prescribe.  This  evasion  has  been 
made  relatively  easy  by  the  lack  of  control  over  the  cap- 
italization and  accounting  of  the  companies.  The  abuses 
growing  out  of  these  conditions  have  led  some  of  the 
states  to  establish  more  careful  control  over  the  capital- 
ization of  street-railway  companies.  In  Massachusetts  the 
approval  of  the  State  Board  of  Railroad  Commissioners 
is  necessary  before  any  securities  may  be  issued  by  a 
street-railway  company.  The  law  furthermore  provides 
that  new  stock  must  be  offered  to  stockholders  at  present 
market  value  in  order  to  avoid  the  distribution  of  stock 
dividends.  Massachusetts  also  attempts  to  secure  to  the 
people  participation  in  the  profits  of  the  street-railway 
companies  by  providing  that  "  any  street-railway  com- 
pany which  has  from  the  beginning  of  its  corporate 
existence  paid  in  the  aggregate  dividends  equal  to  six 
per  cent  on  its  capital  stock,  and  which  is  now  paying 
more  than  eight  per  cent,  shall  pay  a  tax  equal  in 
amount  to  one  half  the  excess  of  dividends  over  and 
above  eight  per  cent." 


THE    CITY    AND    PUBLIC    UTILITIES      237 

A  further  step  toward  assuring  compliance  with  the 
contract  requirements  of  franchise  grants  has  been  taken 
in  providing  for  the  publicity  of  corporate  accounts. 
The  most  notable  effort  in  this  direction  has  been  made 
by  the  State  of  Ohio.  Provisions  providing  for  a  simi- 
lar form  of  control  are  contained  in  the  charters  of 
San  Francisco  and  Portland,  Ore. 

As  regards  the  duration  of  the  franchise,  the  most 
diverse  systems  prevail.  The  early  method  was  one  of 
perpetual  franchises,  and  this  plan  still  prevails  in  New 
Jersey,  Missouri,  and  Indiana.  This  plan  suffers  from 
the  serious  defect  that  the  local  authorities  cannot  se- 
cure adequate  control  over  the  companies  until  they 
apply  for  new  privileges.  This  system  is  being  rapidly 
abandoned,  and  is  giving  way  to  a  plan  for  limited 
franchises  ranging  from  ten  years,  as  in  Wyoming,  to 
ninety-nine  years,  as  in  the  State  of  Louisiana.  In  Ari- 
zona, Idaho,  in  the  second-class  cities  of  New  York,  and 
in  the  city  of  Cincinnati,  the  limit  of  franchise  grants 
is  fifty  years.  In  Michigan,  Virginia,  Alabama,  and 
Florida  the  limit  is  thirty  years;  in  Ohio  and  in 
the  cities  of  Iowa  which  are  under  special  charter,  as 
well  as  in  San  Francisco,  St.  Paul,  and  Portland,  Ore., 
twenty-five  years,  and  in  the  cities  of  Illinois,  Ken- 
tucky, Nevada,  South  Dakota,  and  Montana,  twenty 
years.  The  most  peculiar  plan  is  that  adopted  in  Massa- 
chusetts, in  which  franchises  are  granted  for  indefinite 
periods,  revocable  at  any  time,  although  such  revocation 


238  PROBLEMS  OF  CITY  GOVERNMENT 

must  be  approved  by  the  State  Board  of  Railroad  Com- 
missioners. 

The  interests  of  the  municipalities  are  best  subserved 
by  a  relatively  short  franchise  grant  with  periodical 
renewals.  The  original  grant  must  be  for  a  period 
sufficiently  long  to  induce  capital  to  embark  upon  the 
enterprise.  Under  present  conditions  a  period  of  thirty 
years  is  fully  adequate  to  offer  this  inducement,  pro- 
vided the  grant  contemplates  a  renewal  at  the  end  of 
this  period,  with  the  possibility  of  revising  the  terms 
of  the  grant.  In  New  York  grants  may  be  made  for 
twenty-five  years,  with  a  renewal  of  twenty-five  years 
at  the  expiration  of  the  original  period.  In  the  city 
of  Cincinnati  grants  are  made  for  fifty  years,  with  the 
reserved  right  of  the  city  to  change  the  rates  of  fare 
after  the  expiration  of  the  first  twenty  years,  and  at  the 
expiration  of  fifteen  years  thereafter. 

In  any  discussion  of  the  principles  that  should  govern 
the  granting  of  franchises,  it  is  important  to  remember 
that  these  principles  must  change  with  changing  condi- 
tions. Thus  the  rules  which  we  to-day  regard  as  of 
unquestioned  validity  would  have  greatly  retarded  the 
development  of  the  street-railway  system  had  they  been 
applied  forty  or  fifty  years  ago.  For  instance,  there  is 
at  present  a  growing  sentiment  throughout  the  United 
States  that  franchises  should  not  be  granted  for  a  period 
exceeding  twenty-five  years,  but  it  is  extremely  doubtful 
whether  the  street-railway  companies  would  have  been 


THE    CITY   AND    PUBLIC    UTILITIES      239 

willing  to  make  the  extensive  improvements  which  recent 
years  have  witnessed  if  the  franchise  period  had  been  a 
short  one.  The  long-term  franchise  contributed  in  no 
small  measure  toward  giving  to  our  American  communi- 
ties a  fairly  efficient  transportation  service  long  before 
such  service  was  enjoyed  by  the  people  of  European 
cities. 

Briefly  summarized,  the  principles  that  should  govern 
the  granting  of  franchises  may  be  formulated  as  fol- 
lows : 

(1)  The  power  to  determine  the  charges  of  public- 
service  corporations  is  of  little  value  unless  there  is  com- 
bined therewith  careful  control  over  capitalization. 

(2)  Control  over  capitalization  cannot  be  made  ef- 
fective unless  it  is  combined  with  public  supervision  over 
the  accounting  of  such  corporations. 

(3)  In  order  to  prevent  the  payment  of  stock  divi- 
dends new  stock  should  not  be  issued  at  less  than  its 
market  value. 

(4)  No  universal  rule  can  be  established  with  refer- 
ence to  the  length  of  franchise  terms.    Such  terms  should 
range  from  twenty-five  to  forty  years,  depending  on  the 
size  of  the  city  and  the  probable  annual  net  return  from 
the  use  of  such  franchise. 

(5)  The  city  should  exact  compensation  in  the  form 
of   lower   charges    rather   than    in    large    financial    re- 
turns. 

(6)  At  the  close  of  the  franchise  term  the  physical 


240      PROBLEMS    OF    CITY    GOVERNMENT 

property  of  the  company  should  revert  to  the  city  at  its 
appraised  value. 

REFERENCES 

BEMIS,  E.  W.     "Municipal  Monopolies."     New  York:  Crowell, 

1899. 

"Central  Electric  Light  and  Power  Stations,  1902."     Washing- 
ton: Bureau  of  Census,  1905. 
FOOTE,   A.    R.     "Control   of   Public   Works."     Published   by 

author,  1897. 

HOWE,  F.  C.     "  The  British  City."    New  York:  Scribner,  1907. 
"Municipal  and  Private  Operation  of  Public  Utilities."    New 

York :  National  Civic  Federation,  1907. 
"Relation  of  Modern  Municipalities  to  Quasi-Public  Works." 

Publications  American  Economic  Association,  vol.  ii,  No. 

6,  1888. 
"Street  and  Electric  Railways,  1902."    Washington:   Bureau 

of  Census,  1905. 
WHINERY,  S.     "Municipal  Public  Works."    New  York:  Mac- 

millan,  1903. 


CHAPTER    XI 

THE  MUNICIPALITY  AND  THE  GAS  SUPPLY,  AS  ILLUSTRATED 
BY   THE   EXPERIENCE   OF   PHILADELPHIA 

IN  1897  the  mayor  and  councils  of  Philadelphia 
decided  to  lease  the  city's  gas  works  to  a  private  com- 
pany. This  marked  a  change  of  policy  of  more  than 
local  importance.  That  the  third  largest  city  in  the 
United  States  should  decide  to  relinquish  the  control 
of  one  of  its  public  works,  after  over  forty  years  of 
quasi-municipal  management,  and  ten  years  of  complete 
municipal  ownership  and  operation,  was  construed  as  a 
confession  of  the  inability  of  public  authorities  to  admin- 
ister public  works  successfully,  or  at  least  as  an  acknowl- 
edgment of  the  superiority  of  private  over  public  man- 
agement. For  this  reason,  if  for  no  other,  the  conditions 
under  which  the  change  took  place  deserve  more  than 
passing  notice.  A  further  element  of  interest  presents 
itself  in  the  fact  that  the  abandonment  of  municipal 
management  illustrates,  with  great  clearness,  the  atti- 
tude of  the  population  of  our  large  cities  toward  munic- 
ipal affairs. 

The  friends,  as  well  as  the  opponents  of  the  lease, 
were  agreed  that  the  results  of  municipal  management 

241 


242   PROBLEMS  OF  CITY  GOVERNMENT 

of  the  gas  works  were  not  encouraging.  This  conclu- 
sion was  reached,  however,  without  a  careful  examina- 
tion of  the  history  of  this  municipal  enterprise.  It  was 
deemed  sufficient  to  point  out  one  or  two  manifest  short- 
comings to  settle  the  question.  This  attitude  of  many 
who  were  opposed  to  leasing  contributed  greatly  toward 
strengthening  the  hands  of  the  corporation  bidding  for 
the  franchise. 

To  form  a  correct  opinion  of  the  success  or  failure 
of  any  municipal  undertaking  is  by  no  means  a  simple 
operation.  It  involves  an  insight  into  the  past  and  a 
discounting  of  the  future,  rare  in  any  community,  par- 
ticularly in  those  in  which  the  interest  in  public  affairs 
is  undeveloped.  Factors  of  great  future  importance  but 
minor  present  interest  must  be  considered.  A  constant 
comparison  of  the  relative  advantages  and  disadvantages 
of  public  and  private  management  must  be  made,  and 
the  tendencies  manifested  by  each  kept  in  mind. 

It  is  not  surprising,  therefore,  that  the  immediate 
advantages  connected  with  the  company's  offer  should 
have  proved  an  irresistible  temptation  to  the  people  of 
Philadelphia.  The  comparatively  weak  opposition  en- 
countered by  the  leasing  proposition  was  regarded  by 
many  as  one  of  the  most  discouraging  symptoms  in  our 
civic  life.  It  would  be  difficult  to  justify  this  criticism. 
The  interest  of  the  population  in  the  administration  of 
the  gas  works  is  limited  to  the  quality  and  price  of  the 
gas  supplied.  As  regards  quality,  there  had  been  just 


THE    MUNICIPALITY    AND    GAS    SUPPLY    243 

cause  for  complaint.  Although  gradually  improving, 
the  illuminating  force  had  not  risen  above  nineteen  can- 
dle power.  To  ascertain  the  real  causes  of  this  defect 
required  more  careful  study  and  discrimination  than 
are  usually .  given  to  public  affairs,  where  the  popula- 
tion is  concerned  with  results  rather  than  with  causes. 
Tangible  results  furnish  the  basis  for  an  easy  judg- 
ment of  existing  conditions;  the  ascertainment  of  causes 
requires  careful  analysis  and  far  more  time  and  thought 
than  the  average  citizen  is  willing  to  take  from  his  pri- 
vate affairs.  It  is  true  that  the  opposition  to  the  lease, 
carried  on  by  a  few  public-spirited  men,  had  begun  to 
arouse  the  public  to  a  consciousness  of  the  fact  that 
motives  other  than  the  mere  desire  to  escape  from  the 
shortcomings  of  city  management  would  determine  the 
policy  of  the  city.  This  feeling  was  not  given  time  to 
express  itself.  The  lease  was  hurried  through  councils, 
discussion  was  systematically  blocked,  and  the  ordinance 
was  signed  by  the  mayor  without  a  moment's  delay. 
Within  a  week  of  the  signing  of  the  ordinance  the  whole 
question  had  practically  dropped  from  the  public  view. 
The  question  first  to  be  considered  is  whether  munic- 
ipal management  was  really  a  failure.  The  answer  to 
this  necessitates  a  review  of  certain  facts  in  the  history 
of  the  works.  By  far  the  most  important  point  to  be 
kept  in  mind  is  that  Philadelphia  had  but  ten  years 
of  responsible  municipal  management  of  the  gas  works. 
When  the  city  in  1835  first  embarked  upon  the  manufac- 


244  PROBLEMS  OF  CITY  GOVERNMENT 

ture  of  illuminating  gas,  it  was  in  the  form  of  a  combina- 
tion of  public  and  private  ownership  and  management. 
In  1841  the  city  became  sole  owner,  but  the  management 
was  intrusted  to  a  board  elected  by  councils,  which  was 
to  have  full  charge  of  the  property  and  funds,  and  to 
act  as  trustees  of  the  gas  loan.  No  part  of  the  profits 
from  the  works  was  paid  into  the  city  treasury.  Soon 
after  the  creation  of  this  body,  which  was  known  as  the 
"  Gas  Trust,"  a  conflict  arose  with  the  city  councils. 
The  trustees  denied  the  right  of  councils  to  interfere 
with  their  management  of  the  works.  In  this  they  were 
sustained  by  the  courts,  which  held  1  that  neither  coun- 
cils nor  any  other  city  authority  could  interfere  with 
the  trustees  until  the  maturity  and  payment  of  all 
the  gas  bonds  placed  under  their  charge.  Not  until 
July,  1885,  was  it  possible  to  free  the  works  from  this 
irresponsible  body,  for  not  until  then  did  these  bonds 
mature. 

The  period  of  responsible  city  management  may  be 
said  to  begin  with  the  new  city  charter,  known  as  the 
Bullitt  Bill,  which  went  into  effect  on  April  1,  1887. 
By  the  ordinance  of  April  4,  1887,  councils  organized 
the  Bureau  of  Gas  as  a  part  of  the  Department  of  Pub- 
lic Works,  thus  placing  this  service  under  the  control 
of  an  official  directly  responsible  to  and  removable  by 
the  mayor.  The  era  of  gas-trust  administration  is  of 

1  Western  Savings  Fund  Company  vs.  Philadelphia.     31   Pa. 
State  Reports,  175. 


THE    MUNICIPALITY    AND    GAS    SUPPLY    245 

importance  in  judging  the  period  of  responsible  city 
management,  for  it  throws  considerable  light  on  the 
nature  of  the  difficulties  with  which  the  city  authorities 
have  had  to  deal.  Various  investigations  into  the  admin- 
istration of  the  gas  works,  notably  that  of  1881,  have 
thrown  a  flood  of  light  upon  the  corruption,  fraud,  and 
mismanagement  which  flourished  under  gas-trust  con- 
trol. During  the  closing  years  of  this  irresponsible 
body,  especially  between  1875  and  1885,  the  plant  was 
permitted  to  deteriorate;  improved  methods  of  produc- 
tion were  ignored,  mains  and  service  pipes  were  allowed 
to  rust  and  rot,  and  no  attempt  was  made  to  adapt  the 
distributing  system  to  the  increase  in  production  and 
consumption.  The  works  gradually  became  filled  and 
overfilled  with  the  political  subordinates  and  henchmen 
of  the  board.  This  was  conclusively  shown  by  the 
attorneys  of  the  Committee  of  One  Hundred,  a  body 
which  aided  the  city  in  the  prosecution  of  the  trustees. 

In  1887  the  city  fell  heir  to  this  mass  of  systematized 
corruption,  together  with  an  antiquated  gas  plant.  The 
tests  of  efficiency  in  the  public  management  of  the 
works  must  in  fairness  be  restricted  to  the  period  since 
that  date.  That  municipal  management  started  out 
under  the  worst  possible  conditions  is  a  fact  not  to  be 
overlooked  in  judging  of  its  success  or  failure. 

The  ten  years  between  1887  and  1897  give  evidence 
of  continuous  and  concerted  effort  to  overcome  the  ob- 
stacles to  improvement  which  the  period  of  gas-trust 
17 


246     PROBLEMS    OF    CITY    GOVERNMENT 


management  had  accumulated.  In  the  face  of  these  diffi- 
culties the  profits  steadily  increased,  notwithstanding  the 
fact  that  the  city  was  no  longer  paying  for  the  gas  used 
in  public  lighting,  as  had  been  the  case  prior  to  1887. 
That  the  amount  consumed  in  public  lighting  was  by  no 
means  insignificant  is  shown  by  the  following  table: 


YEAR 

Amount  of 
gas  consumed  in 
public  lighting, 
i.e.  ,  gas  unpaid  for 

Value 
at  current  price 

Value  at 
estimated  cost  of 
production 
and  distribution 

1887           

506,499,881 

$759,749  82 

$683,774  84 

1888           

536,158,081 

804  237  12 

723,813.41 

1889               .    .    . 

521,401,101 

782  101  65 

702,891  49 

1890  

551,459,572 

827,189.36 

744,470.42 

1891  

587,398,328 

881,097  49 

792,987  .  44 

1892  

594,203,605 

891,305.41 

793,174.87 

1893   

602,392,714 

903,589  17 

813,230.25 

1894    

623,313,751 

623,313  75 

488,651.00 

1895  

638,494,005 

638,494.01 

480,795.20 

1896  

674,031,512 

674,031.51 

539,225.21 

In  1894  the  price  of  gas  was  reduced  from  $1.50  to 
$1.00  per  thousand  cubic  feet,  which  caused  a  sudden 
decline  in  gross  profits. 

The  relative  amount  expended  for  salaries  and  wages 
was  being  gradually  reduced  by  the  city  authorities. 
Thus,  in  1870,  in  the  manufacture  of  1,240,485,000 
cubic  feet  of  gas,  $941,740.40  were  expended  in  salaries 
and  wages;  in  other  words,  nearly  seventy-six  cents  per 
thousand  cubic  feet.  By  1890  the  amount  had  been 
reduced  to  twenty-seven  cents  per  thousand,  and  in  1896 
to  twenty-two  cents. 

An  examination  of  the  reports  during  this  period 


THE    MUNICIPALITY   AND    GAS   SUPPLY    247 

gives  unmistakable  evidence  of  improvement  in  organ- 
ization and  businesslike  administration,  within  the 
comparatively  narrow  limits  in  which  such  improve- 
ment was  possible.  We  are  here  brought  face  to  face 
with  the  real  source  of  weakness  in  the  municipal  man- 
agement of  the  gas  works,  viz.,  the  policy  of  councils. 
In  this  respect  Philadelphia  furnishes  a  striking  in- 
stance of  a  governmental  weakness  characteristic  of 
American  cities.  The  universal  experience  has  been  that 
if  local  representative  bodies  are  permitted  to  direct  the 
details  of  administrative  policy,  unbusinesslike  methods 
are  sure  to  result.  In  Philadelphia  the  local  assembly 
still  retains  complete  control  over  the  city's  finances, 
which  enables  it  to  interfere  with  the  details  of  depart- 
mental administration.  If,  in  these  circumstances,  the 
city  council  had  allowed  itself  to  be  guided  by  the  rec- 
ommendations of  the  technically  trained  heads  of  de- 
partments businesslike  management  of  the  works  would 
have  been  possible.  Two  influences  immediately  made 
themselves  felt  in  the  policy  of  the  council:  First,  the 
desire  to  reduce  the  rate  of  taxation,  regardless  of  the 
needs  of  municipal  industrial  enterprises,  and,  secondly, 
the  temptation  to  use  the  control  over  public  works  for 
political  purposes.  Both  of  these  influences  were  pro- 
ductive of  much  harm  during  the  ten  years  of  municipal 
management. 

It   is   generally   supposed  that  the   attempt  to  use 
the  works  for  political  purposes,  i.  e.,  to  have  friends 


248     PROBLEMS    OF   CITY    GOVERNMENT 

of  coimcilmen  placed  upon  the  payroll,  was  the  most 
serious  obstacle  to  efficiency.  As  a  matter  of  fact,  this 
was  a  small  evil  compared  with  the  shortsighted  finan- 
cial policy  of  councils.  As  we  shall  have  occasion  to 
see,  the  amount  expended  in  wages  and  salaries  was 
excessive;  but  while  this  evil  was  gradually  being  rem- 
edied, the  financial  policy  of  councils  gave  but  little 
evidence  of  improvement.  The  most  elementary  busi- 
ness principles  were  disregarded.  In  every  well-man- 
aged manufacturing  enterprise  it  is  the  custom  to  charge 
a  certain  amount  each  year  to  depreciation  or  to  adopt 
some  other  plan  to  provide  for  constant  renewal.  This 
involves  the  expenditure  of  a  certain  percentage  of  gross 
profits  to  prevent  actual  deterioration.  In  any  well- 
ordered  account  this  item  constitutes  a  fixed  charge  to 
be  met  before  gross,  not  to  speak  of  net,  profits  can  be 
said  to  exist.  In  the  case  of  the  Philadelphia  gas  works, 
however,  gross  profits  were  used  to  diminish  the  tax  rate 
rather  than  to  maintain  the  plant  at  a  high  standard 
of  efficiency.  Between  1887  and  1897  nearly  $8,000,000 
would  have  been  available  for  the  improvement  of  the 
plant.  Hardly  a  sixth  of  this  sum  was  used  for  this 
purpose.  Year  after  year  the  Director  of  Public  Works 
urged  upon  councils  the  necessity  of  improved  methods 
of  production  and  distribution.  With  equal  regularity 
councils  continued  to  use  the  profits  from  gas  making 
to  defray  general  city  expenses.  The  accompanying 
table  illustrates  the  financial  results  of  this  policy: 


THE    MUNICIPALITY    AND    GAS    SUPPLY    249 


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250      PROBLEMS    OF    CITY    GOVERNMENT 

The  inevitable  consequences  soon  made  themselves 
felt  both  in  the  manufacturing  and  in  the  distributing 
departments.  The  former  showed  an  unusually  high 
cost  of  production ;  the  latter  an  inordinately  high  per- 
centage of  leakage.  While  the  estimates  of  the  cost  of 
production,  exclusive  of  the  cost  of  distribution,  differ 
somewhat,  it  is  certain  that  it  was  not  below  forty-five 
cents  per  thousand,  and  probably  nearer  fifty.  It  was 
comparatively  easy  for  private  companies  to  offer  gas 
to  the  city  at  a  price  far  below  this  figure.  The  great 
improvements  in  the  water-gas  process  had  brought 
about  a  complete  change  in  methods  of  production,  a 
mixture  of  coal  and  water  gas  having  been  generally 
adopted  by  the  more  progressive  companies.  Instead 
of  making  the  changes  in  the  works  necessary  for  this 
purpose,  the  city  entered  into  a  contract  with  the  Phila- 
delphia Gas  Improvement  Company  to  furnish  water 
gas  at  thirty-seven  cents  per  thousand  cubic  feet.  These 
purchases,  small  at  first,  gradually  increased,  until  in 
1896  over  thirty-eight  per  cent  of  the  total  gas  used  was 
purchased  from  the  company.  The  purchases  for  each 
year  are  given  in  the  accompanying  table. 

While  at  first  glance  the  purchase  of  gas  at  thirty- 
seven  cents  seemed  advantageous  to  the  city,  the  real 
effect  was  to  retard  improvement.  The  increased  con- 
sumption of  each  year  was  being  met  largely  through  the 
purchase  of  water  gas  from  a  private  company,  thus 
removing  the  greatest  incentive  to  the  improvement  of 


THE    MUNICIPALITY    AND    GAS    SUPPLY    251 


YEAK 

Coal  gas 
manufactured, 
cubic  feet 

Water  gas,  cubic 
feet 

Amount 
expended  for 
water  gas 

1889   

1,310,869,000 

919,640,000 

$299,985  64 

1890   

2,042,059,000 

1,134,922,000 

425,283  75 

1891  

2,065,444,000 

1,326,443,000 

490,784  08 

1892  

2,233,238,000 

1,351,351,000 

500,000  00 

1893   

2,261,550,000 

1,541,756,000 

570,449  96 

1894  

2,803,838,000 

1,306,563,000 

557,428  38 

1895  

2,538,065,000 

1,699,687,000 

600,000  00 

1896  

3,021,570,000 

1,891,891,000 

700,000  00 

the  city's  works.  Furthermore,  as  was  shown  by  expert 
testimony  before  the  committee  to  which  the  question  of 
leasing  had  been  committed,  water  gas  could  then  be 
manufactured  at  twenty-five  cents  per  thousand,  which 
means  that  the  city  was  paying  to  the  gas  company 
a  clear  profit  of  fifty  per  cent  on  the  gas  thus  pur- 
chased. 

Another  direct  result  of  the  failure  to  expend  a  cer- 
tain percentage  of  gross  profits  on  improvements  is 
shown  in  the  cost  and  conditions  of  distribution.  The 
Chief  of  the  Bureau  of  Gas  repeatedly  called  the  atten- 
tion of  councils  to  the  fact  that  the  gas-holders  were  not 
sufficiently  numerous,  nor  were  they  so  distributed  as 
to  secure  the  best  results.  In  order  to  carry  the  gas  to 
great  distances,  it  was  necessary  to  force  it  through  the 
pipes  at  high  pressure.  The  resulting  friction  robbed 
it  of  a  part  of  its  illuminating  power,  caused  condensa- 
tion and  greatly  increased  leakage.  The  evil  was  fur- 
ther aggravated  by  the  fact  that  the  mains  had  not  been 


252      PROBLEMS    OF    CITY    GOVERNMENT 

enlarged  to  accommodate  the  increased  volume  of  gas. 
It  is  not  surprising,  therefore,  that  the  item  "  gas  un- 
accounted for  "  increased  with  each  year,  until  in  1896 
it  amounted  to  nearly  one  fourth  the  total  amount  manu- 
factured. This  alone  meant  an  annual  loss  of  over 
.$1,000,000.  Comparison  with  a  few  well-managed  city 
or  private  enterprises,  for  which  figures  are  obtainable, 
is  of  interest  in  this  connection : 


WORKS 

Amount  of 
gas  manufactured 
1896 

Leakage 
and  gas  unac- 
counted for 

Per- 
centage 

Philadelphia  

4,913,461,000' 

1,132,646,138 

23.9 

Manchester  

3,762,570,000 

116,560,000 

3.1 

Glasgow  

4,525,000,000 

425,500,000 

10.0 

Boston  Gas  Company.   .    .  . 

1,130,189,700 

32,692,630 

2.89 

Brookline  Gas  Company  .  .  . 
Lowell  Gas  Company 

753,824,000 
315,073,000 

58,590,067 
20,232,700 

7.77 
6.42 

Further  evidence  of  the  unfortunate  influence  of 
councils  upon  the  administration  of  the  gas  works  is  to  be 
found  in  the  abnormal  annual  expenditure  for  wages 
and  salaries.  We  have  already  seen  that  this  constituted 
one  of  the  great  abuses  during  the  period  of  gas-trust 
management.  Although  the  worst  evils  were  remedied 
under  responsible  city  control,  much  still  remained  to  be 
done.  In  the  first  place  councils  had  fixed  a  rate  of 
wages  far  above  the  market  rate.  The  Director  of  Pub- 
lic Works  published  a  statement  in  which  he  pointed 


1  Including  water  gas  purchased  from  Philadelphia  Gas  Improve- 
ment Company. 


THE    MUNICIPALITY    AND    GAS    SUPPLY    253 


out  that  instead  of  paying  the  1,700  laborers  $1.75  per 
day  he  could  obtain  equally  competent  men  for  $1.25. 
Whatever  may  be  said  in  favor  of  "  trades-union 
wages  "  in  city  employment,  it  must  be  remembered 
that  this  excess  of  fifty  cents  per  day  above  the  market 
rate  involved  an  additional  annual  outlay  of  nearly 
$275,000.  The  payroll  was  further  increased  through 
the  addition  of  many  laborers  under  the  elastic  account 
of  "  repairs."  Comparison  with  the  accounts  of  pri- 
vate and  municipal  gas  works  shows  the  drain  of  this 
item  upon  the  resources  of  the  Philadelphia  works: 


WORKS 

Amount  of  gas 
consumed  in  private 
and  public  lighting 
cubic  feet 

Price 
of  gas  per 
l.OOOcu.  ft. 

Total 
expenditure 

Philadelphia  (1896)  . 
Glasgow  (1896)  
Manchester  (1896).  . 
Birmingham  (1896)  . 

3,619,427,312 
4,062,500,000 
4,300,165,000 
4,152,652,000 

$1.00 
.52| 
.54! 
-54|' 

$2,852,103.11* 
2,449,553.47 
2,222,903.00 
2,364,238.93 

,§!«• 

Is* 

WORKS 

Expenditure 
for  coal 

Expenditure 
for  wages 
and  salaries 

Ill 

on  of  w 
salaries 
il  expen 

tfi 

Jit 

Percent 

Philadelphia  (1896). 

$1,049,969.29 

$1,194,191.00 

$0.32-,*0 

41.8 

Glasgow  (1896)  

1,320,300.22 

622,393.00 

0.15A 

25.4 

Manchester  (1896).  . 

1,120,058.47 

473,890.00 

0.11 

21.3 

Birmingham  (1896). 

1,054,862.91 

463,350.00 

O.llVff 

19.6 

1  Seventy-four  cents  for  small  quantities. 

2  Exclusive  of  $700,000  expended  in  purchase  of  gas  from  private 
company. 


254     PROBLEMS    OF    CITY    GOVERNMENT 

While,  therefore,  it  is  evident  that  the  real  weak- 
ness in  city  management  lay  in  the  policy  of  councils, 
there  are  distinct  indications  of  minor  evils  due  to 
the  internal  administration  of  the  works.  The  most 
important  of  these  relate  (1)  to  the  purchase  of 
materials,  and  (2)  to  the  receipts  from  residual 
products. 

During  the  period  between  1887  and  1897  the  city 
paid  between  $3.11  and  $3.14  per  ton  for  coal,  whereas 
it  is  a  well-established  fact  that  responsible  firms  were 
prepared  to  furnish  the  same  quality  at  $2.95.  The  bids 
of  the  firms  offering  coal  at  $2.95  were  invariably 
ignored.  In  this  one  item  alone  the  department  could 
have  effected  an  annual  saving  of  between  $75,000  and 
$100,000. 

The  failure  fully  to  utilize  residual  products  affected 
even  more  unfavorably  the  profit-and-loss  account.  The 
receipts  from  this  source  averaged  during  the  last  few 
years  of  municipal  operation  about  30.6  per  cent  of  the 
cost  of  coal,  the  main  item  in  the  expense  account.  That 
this  percentage  is  far  below  the  amount  which  careful 
business  management  would  give  is  shown  by  compari- 
sons with  private  companies  in  the  United  States  and 
with  municipal  gas  works  in  England.  The  report  of 
the  Massachusetts  Board  of  Gas  and  Electric  Light 
Commissioners  for  1896  gives  full  information  on  this 
point  for  the  companies  within  that  State.  In  the  larger 
companies  the  percentage  of  the  outlay  for  coal,  realized 


THE    MUNICIPALITY    AND    GAS    SUPPLY    255 

through  the  sale  of  residual  products,  ranges  from 
45  to  51  per  cent.  The  average  of  47  companies  is  43.89 
per  cent.  In  the  gas  works  of  the  cities  of  Manchester, 
Glasgow,  and  Birmingham  the  percentage  ranges  from  43 
per  cent  in  the  former  to  56.2  per  cent  in  the  latter. 
Compared  with  these  figures,  the  30.6  per  cent  obtained 
in  the  Philadelphia  works  makes  but  a  poor  showing. 
The  real  cause  of  the  difficulty  is  to  be  found  in  the 
fact  that  certain  persons,  either  councilmen  or  other 
local  politicians,  enjoyed  the  monopoly  of  the  purchase 
of  residual  products  at  prices  considerably  below  market 
rates.  Here,  as  in  so  many  other  cases,  the  influence 
of  the  local  assembly  was  at  the  root  of  the  difficulty. 
It  is  to  be  noted,  however,  that  the  period  of  respon- 
sible municipal  management  gave  evidence  of  increasing 
economy  in  the  utilization  of  by-products  as  compared 
with  the  "  gas-trust  "  period.  In  1870  the  percentage 
was  but  15.4;  in  1875,  17;  in  1880,  21.9;  in  1896,  30.6 
per  cent. 

Our  analysis  thus  far  tends  to  prove  that  the  most 
serious  defects  connected  with  city  management  are 
traceable  to  evils  inherited  from  a  period  of  corruption 
and  incompetency.  During  the  decade  of  responsible 
city  control  we  find  abundant  indication  of  improvement 
in  every  direction.  That  such  improvement  was  not 
more  rapid  is  to  be  attributed  to  the  shortsighted  policy 
of  councils  rather  than  to  defects  in  the  administration 
of  the  gas  department. 


Before  entering  upon  a  discussion  of  the  broader 
questions  of  public  policy  which  are  involved  in  the 
relation  of  the  municipality  to  the  gas  supply,  it  will 
be  well  to  consider  the  conditions  under  which  the  lease 
was  effected. 

Some  years  before  the  expiration  of  the  gas-trust 
period,  combinations  of  capitalists  began  to  speculate  on 
the  possibility  of  obtaining  a  monopoly  of  the  gas  supply. 
In  1883  the  first  definite  offer  was  made— $10,000,000 
for  the  plant  and  an  exclusive  franchise.  During  subse- 
quent years  new  offers  were  forthcoming,  which  usually 
met  with  vigorous  opposition  in  councils,  as  well  as  with 
the  public.  When  in  September,  1897,  the  mayor  trans- 
mitted to  councils  the  offer  of  the  United  Gas  Improve- 
ment Company,  it  soon  became  evident  from  the  dispo- 
sition of  councils  to  stifle  discussion  and  hasten  action, 
that  the  plans  for  the  leasing  of  the  works  had  been  care- 
fully laid.  It  is  not  our  purpose  to  enter  into  an  analysis 
of  the  influences  which  proved  irresistible  in  securing 
the  acceptance  of  the  company's  proposition.  It  must  be 
said,  however,  that  whatever  the  nature  of  these  influ- 
ences, they  were  greatly  aided  by  the  attitude  of  a  large 
portion  of  the  business  community.  The  prospect  of 
securing  gas  of  a  better  quality  at  a  lower  price  over- 
shadowed for  the  time  being  all  other  considerations. 
As  a  result,  the  permanent  interests  of  the  city  were  lost 
sight  of.  The  gas  works  were  handed  over  to  the  com- 
pany whose  proposals  alone  received  serious  consideration 


THE    MUNICIPALITY    AND    GAS    SUPPLY    257 

from  councils,  notwithstanding  the  fact  that  other  and 
more  favorable  offers  had  been  made  by  responsible  par- 
ties. In  granting  an  exclusive  privilege  to  this  corpora- 
tion the  most  elementary  business  principles  were  dis- 
regarded. It  seems  a  commonplace  to  say  that  the 
consideration  in  return  for  a  franchise  should  be  de- 
termined by  the  value  of  the  privilege.  In  this  case, 
however,  the  only  question  which  seemed  to  interest 
the  public  was  whether  the  company  was  prepared  to 
give  better  gas  at  a  lower  figure  than  the  city;  if  so, 
no  further  conditions  seemed  necessary  to  safeguard 
local  interests.  Had  the  terms  of  the  lease  been  for- 
mulated with  reference  to  the  possibilities  of  profit  to 
a  company  enjoying  a  monopoly  of  the  gas  supply,  the 
results  would  have  been  very  different.  There  was  evi- 
dence on  all  sides  that  the  population  was  gradually 
awakening  to  this  fact;  but  so  rapidly  was  the  lease 
hurried  through  councils  that  no  opportunity  was  given 
to  make  such  awakening  effective. 

The  lease,  as  finally  signed,  gave  to  the  company  a 
monopoly  of  the  gas  supply  for  a  period  of  thirty  years. 
At  any  time  prior  to  July  1,  1907,  the  city  might  have 
terminated  the  lease  on  condition  of  reimbursing  the 
company  for  all  improvements,  plus  six  per  centum  sim- 
ple interest  on  the  amounts  thus  expended.  It  was  quite 
clear  at  the  time  of  the  signing  of  the  lease  that  the 
option  thus  given  was  one  which  the  city  would  not  be 
able  to  exercise,  owing  to  the  constitutional  limitations 


258     PROBLEMS    OF   CITY   GOVERNMENT 

on  municipal  indebtedness.  In  return  for  the  privilege 
the  company  agreed: 

First. — To  furnish  gas  of  twenty-two  candle  power 
at  $1  per  thousand  cubic  feet. 

Second. — To  pay  into  the  city  treasury  upon  all  gas 
sold  prior  to  January  1,  1908,  all  sums  received  in  excess 
of  ninety  cents  per  thousand  cubic  feet ;  after  December 
31,  1907,  and  prior  to  January  1,  1913,  all  sums  in  excess 
of  eighty -five  cents  per  thousand;  from  December  31, 
1912,  to  January  1,  1918,  all  sums  in  excess  of  eighty 
cents  per  thousand,  and  from  that  time  until  the  expira- 
tion of  the  lease  (December  31,  1927)  all  sums  in  excess 
of  seventy-five  cents.  Council  is  given  the  power  to 
reduce  the  price  at  the  dates  above  mentioned  to  ninety, 
eighty-five,  eighty,  and  seventy-five  cents  respectively, 
in  which  case  the  city  will  receive  no  money  rental. 

Third. — To  light,  free  of  charge,  all  public  buildings 
and  lamps,  and  to  provide  for  the  lighting  of  300  addi- 
tional lamps  each  year.  All  public  lamps  to  be  lighted, 
extinguished,  cleaned,  and  repaired  at  the  expense  of  the 
company. 

Fourth. — To  expend  within  three  years  $5,000,000  in 
alterations,  improvements,  and  extensions,  and  at  least 
$15,000,000  for  the  same  purposes  during  the  thirty 
years  of  the  lease. 

Fifth. — At  the  expiration  of  the  lease,  December  31, 
1927,  the  city  is  to  receive  the  works  "  without  charge 
or  cost  in  the  condition  of  alteration,  improvement,  and 


THE    MUNICIPALITY   AND    GAS    SUPPLY    259 

change  in  which  the  same  shall  then  exist,  and  the  same 
shall  be  so  maintained  as  to  be  then  in  first-class  order 
and  condition." 

It  would  seem,  at  first  glance,  that  these  provisions 
assure  to  the  city  a  large  return  for  the  franchise.  To 
judge  of  this,  however,  one  must  enter  upon  an  exami- 
nation of  the  possibilities  of  profit  which  the  company 
enjoys.  It  is  to  be  noted  that  if  the  price  of  gas  is  suc- 
cessively reduced  from  one  dollar  until  it  reaches  sev- 
enty-five cents,  the  city  will  receive  nothing  from  the 
company  except  free  light  for  public  lamps  and  the  plant 
at  the  expiration  of  the  lease.  The  contract,  therefore, 
amounts  to  this:  The  city  places  the  gas  works  in  the 
hands  of  a  private  company  for  thirty  years,  in  return 
for  which  the  city  is  to  receive  a  certain  amount  of  gas 
for  public  lighting  free  of  charge.  During  these  thirty 
years  the  people  of  the  city  will  be  compelled  to  pay  $1 
per  thousand  cubic  feet,  or  if  the  city  council  avails 
itself  of  the  power  of  reducing  the  price  of  gas  to  90, 
85,  80,  and  75  cents  during  the  periods  as  specified  in 
the  lease,  such  reductions  will  have  to  be  made  at  the 
expense  of  the  city  treasury.  The  agreement  to  expend 
$15,000,000  in  extensions  and  improvements  cannot  be 
regarded  as  a  burden  upon  the  company,  as  it  repre- 
sents nothing  more  than  a  profitable  investment  of  cap- 
ital, such  as  every  business  man  would  be  compelled  to 
make  in  order  to  utilize  fully  the  opportunities  of  his 
business. 


260      PROBLEMS    OF    CITY    GOVERNMENT 

In  the  discussions  in  councils  and  in  the  public  press 
the  cost  of  service  to  the  citizens  of  Philadelphia  has 
been  largely  lost  sight  of.  An  examination  of  these  rates 
will  show  the  great  value  of  the  franchise  to  the  com- 
pany as  well  as  the  inadequacy  of  the  return  to  the  city. 
One  of  the  most  striking  facts  in  the  history  of  gas- 
making  has  been  the  great  improvements  in  methods  of 
production  that  have  taken  place  during  recent  years. 
During  the  last  three  years  of  municipal  operation  the 
price  of  gas  was  reduced  from  $1.50  to  $1  per  thousand. 
In  this  connection  the  experience  of  British  cities  is  of 
interest.  In  Glasgow  the  gas  works  came  under  munic- 
ipal control  in  1869.  During  the  first  five  years  of 
city  management  the  price  was  gradually  reduced  from 
$1.35  to  $1.14  per  thousand  cubic  feet.  With  each  im- 
provement in  production  the  price  was  lowered  until 
gas  of  18  candle  power  was  reduced  to  52 f  cents  in  1896, 
and  recently  has  been  fixed  at  50  cents.  Manchester 
began  to  manufacture  its  own  gas  as  early  as  1807,  which 
was  reduced  to  54f  cents  per  thousand  in  1896,  where 
it  at  present  stands.  In  Birmingham,  where  the  city 
took  over  the  gas  supply  in  1874,  the  price  ranges  from 
60  to  44  cents  per  thousand  cubic  feet,  according  to  the 
amount  consumed,  the  price  diminishing  as  the  amount 
used  by  the  individual  consumer  increases.  In  almost 
every  case,  whether  at  home  or  abroad,  a  reduction  of 
from  33^  to  50  per  cent  has  taken  place  during  the  last 
thirty  years.  Compared  with  these  figures,  the  price 


THE    MUNICIPALITY    AND    GAS    SUPPLY    261 


which  the  Philadelphia  company  is  receiving  is  excessive. 
Unless  the  company  sees  fit  to  do  so  for  purely  business 
reasons  it  will  be  impossible  to  effect  a  reduction  of 
more  than  12  per  cent  during  the  next  twenty  years. 

But,  it  will  be  said,  British  cities  are  able  to  offer 
gas  at  a  low  price  because  of  cheaper  materials  and 
the  lower  rate  of  wages.  As  regards  the  former,  the 
price  paid  for  coal  is  about  20  per  cent  below  that  paid  in 
Philadelphia.  A  comparison  of  the  rate  of  wages  will 
show  that  while  the  average  wage  was  30  per  cent  higher 
under  municipal  management  in  Philadelphia  than  in 
Glasgow,  Birmingham,  or  Manchester,  the  difference  was 
due  largely,  if  not  wholly,  to  the  fact  that  councils  had 
fixed  the  wages  of  employees  far  above  the  market  rate. 
It  is  to  be  noted,  furthermore,  that  the  Philadelphia 
management  was  paying  an  unusually  high  price  for 
coal,  which  the  United  Gas  Improvement  Company  has 
reduced  considerably. 

It  is  clear,  therefore,  that  there  is  no  such  great  dif- 
ference in  the  cost  of  production  as  is  generally  sup- 
posed. With  the  price  of  gas  nearly  50  per  cent  lower 


WORKS 

Price  of 
gas  per 
thousand 
cubic  feet 

Gross  profit 
exclusive  of 
amount 
debited  to 
depreciation 

Amount  paid 
to  sinking 
fund  to 
liquidate 
gas  loan 

Net  profits 

Glasgow  

$0.50 
.54f 
60  to  44" 

$98,395 
527,140 
445,550 

$158,670 
219,070 
187,920 

$60,275' 
308,070 
257,630 

Manchester  

Birmingham  

1  Deficit.                     *  According  to  amount  consumed. 
18 

262     PROBLEMS    OF    CITY   GOVERNMENT 

than  in  Philadelphia,  the  profits  of  municipal  gas  works 
of  British  cities  in  1905  were  as  shown  on  page  261. J 

According  to  the  terms  of  the  lease  the  people  are 
debarred  from  participating  in  the  benefits  of  improved 
production  during  the  next  two  decades.  The  testimony 
of  experts  before  the  finance  committee  of  councils  was 
to  the  effect  that  it  was  possible  in  1897  to  manufacture 
gas  of  22  candle  power  at  25  cents  per  thousand,  and 
that  the  cost  of  distribution  should  not  exceed  10  cents. 
It  is  beside  the  question  to  say  that  Philadelphia  under 
municipal  management  of  the  gas  works  was  not  able 
to  produce  gas  at  this  price.  In  determining  the  return 
for  the  grant  of  this  monopoly,  the  question  as  to  what 
the  city  can  or  cannot  do  in  performing  the  same  service 
is  a  matter  of  secondary  importance.  The  only  sound 
basis  of  negotiation  is  the  value  of  the  franchise  to  the 
party  seeking  it ;  in  other  words,  the  possibilities  of  profit 
which  the  company  will  enjoy. 

The  first  ten  years  of  the  company's  management  of 
the  gas  works  expired  in  1907.  Under  the  terms  of  the 
contract  the  city  was  given  the  option  to  terminate  the 
lease  on  condition  of  reimbursing  the  company  for  all 
expenditures  for  extensions  and  improvements.  The 
statements  filed  by  the  company  showed  that  during  the 
first  nine  years  of  the  lease  they  had  expended  $11,354,- 
919.77  for  these  purposes.  This  statement  of  the  com- 
pany was  not  and  could  not  be  verified,  inasmuch  as  the 

1  National  Civic  Federation,  Part  I,  vol.  i,  p.  414. 


THE    MUNICIPALITY    AND    GAS    SUPPLY    263 

system  of  accounting  of  the  company  is  in  no  way  con- 
trolled by  the  local  authorities.  In  any  case  it  would 
have  been  extremely  difficult  for  the  city  to  have  taken 
over  the  works,  inasmuch  as  on  January  1,  1907,  the  city 
was  within  $8,836,959.80  of  its  constitutional  debt  limit. 
Owing  to  the  satisfactory  service  which  the  company 
was  giving  there  would  have  been  little  or  no  desire  on 
the  part  of  the  people  to  terminate  the  lease  had  the 
company  refrained  from  submitting  any  proposition  for 
a  further  extension  of  the  term.  In  May,  1905,  a  com- 
munication was  sent  by  the  company  to  the  mayor,  pro- 
posing an  extension  of  the  lease  until  December  31,  1977. 
In  return  for  this  extension  the  company  was  to  pay 
to  the  city  the  sum  of  $25,000,000,  and  was  to  under- 
take also  a  progressive  reduction  of  the  price  of  gas. 
The  plan  thus  submitted  passed  both  branches  of  coun- 
cils, but  was  vetoed  by  the  mayor,  who  was  supported 
by  an  aroused  public  opinion.  The  gas  question  was 
made  the  basis  of  a  vigorous  reform  campaign,  which 
swept  the  then  political  leaders  from  power.  It  looked 
for  a  time  as  if  this  agitation  would  lead  to  the  termina- 
tion of  the  lease  in  1907,  but  when  the  time  arrived  pub- 
lic sentiment  had  quieted  down,  and  the  financial  con- 
dition of  the  city  was  not  such  as  to  justify  the  payment 
of  the  large  sum  due  the  company  for  improvements 
and  extensions.  The  gas  works  will,  therefore,  remain 
in  the  company's  hands  until  December  31,  1927,  when 
they  will  revert  to  the  city. 


264     PROBLEMS    OF    CITY    GOVERNMENT 

Having  examined  the  lease  as  a  purely  business  rela- 
tion between  the  city  and  the  company,  there  still  re- 
mains to  be  considered  the  abandonment  of  this  munici- 
pal function  from  the  broader  standpoint  of  general 
municipal  policy.  The  attitude  of  the  population  to  this 
phase  of  the  question  may  be  regarded  as  typical  of  our 
American  communities,  and  furnishes  a  striking  instance 
of  the  lack  of  civic  ideals  in  our  city  life.  Throughout 
the  discussions  of  the  subject  little  thought  was  given 
to  the  influence  of  such  a  curtailing  of  city  functions 
upon  the  civic  life  of  the  community;  nor  was  the  pos- 
sible social  function  which  the  city  might  perform  in 
the  administration  of  the  gas  service  considered  worthy 
of  attention.  This  attitude  of  the  population  accounts 
for  the  feebleness  of  the  opposition  and  the  boldness  of 
councils  in  stifling  discussion. 

We  have  already  seen  that  from  a  purely  financial 
point  of  view  the  contract  with  the  United  Gas  Improve- 
ment Company  can  hardly  be  said  to  have  given  due 
recognition  to  the  interests  of  the  city,  or  to  those  of 
the  population  as  consumers.  Furthermore,  that  the 
ten  years  of  municipal  management,  far  from  giving 
evidence  of  financial  failure,  show  steady  improvement 
in  organization  and  management.  Such  shortcomings 
as  existed  were  due  to  clearly  assignable  causes  that 
might  readily  have  been  remedied.  In  abandoning  the 
control  of  the  gas  works,  the  valuable  experience  ac- 
quired during  the  period  of  municipal  management  was 


THE    MUNICIPALITY    AND    GAS    SUPPLY    265 

thrown  away.  There  is  no  easy  and  direct  road  to  effi- 
cient public  administration.  In  every  department  effi- 
ciency is  gradually  attained  through  slow  and  laborious 
accretions  of  small  improvements.  When,  therefore, 
twenty  years  hence  the  city  again  comes  into  possession 
of  the  gas  works  it  will  be  compelled  to  meet  difficulties 
equal  to  if  not  greater  than  those  of  the  ten  years  of 
municipal  management. 

Furthermore,  in  parting  with  the  gas  works  the  city 
deprived  itself  of  the  power  of  performing  an  important 
social  service.  Until  recently  financial  considerations 
have  ruled  supreme  in  determining  the  sphere  of  munici- 
pal activity  beyond  the  minimum  of  protection  to  life 
and  property.  We  are  beginning  to  see  that  social 
standards  should  be  given  some  weight  in  municipal 
policy.  The  many  points  at  which  municipal  activity 
touches  our  industrial  and  social  life  give  it  a  far-reach- 
ing influence  for  good  or  evil.  In  the  relation  of  the 
gas  supply  to  the  standard  of  life  and  the  industrial 
efficiency  of  the  population  we  have  a  most  conspicuous 
instance  of  these  possibilities.  Here,  again,  we  must 
turn  to  the  British  cities  for  enlightenment. 

That  the  use  of  gas  is  playing  an  important  part  in 
the  economy  of  modern  life  requires  no  demonstration. 
Neither  will  anyone  doubt  that  it  is  destined  to  play  an 
increasingly  important  part  for  some  years  to  come.  At 
the  time  the  gas  works  were  placed  under  municipal 
control  in  Glasgow — and  the  same  statement  applies  to 


266     PROBLEMS    OF   CITY   GOVERNMENT 

the  other  cities  of  Great  Britain — the  use  of  gas  was  lim- 
ited to  the  well-to-do  classes.  After  careful  study  and 
inquiry  the  municipal  authorities  came  to  the  conclu- 
sion that  a  great  social  end  was  to  be  accomplished  in 
securing  its  introduction  for  cooking  and  illuminating 
purposes  by  the  working  classes,  particularly  in  the 
thickly  settled  tenement  districts.  The  wastefulness  of 
the  coal  stove,  and  the  comparatively  high  cost  of  its 
maintenance,  had  given  to  uncooked  foods  an  important 
place  in  the  standard  of  life  of  these  classes,  a  fact  that 
seriously  affected  their  industrial  efficiency  and  physical 
vigor.  The  widespread  use  of  alcoholic  drinks  was 
to  be  explained  largely  by  the  crude  diet  of  the  laboring 
classes.  It  was  evident  that  the  introduction  of  a  new 
element  into  the  standard  of  life  could  only  be  effected 
by  the  city  through  a  temporary  subordination  of  finan- 
cial considerations.  In  order  to  facilitate  the  use  of 
gas  for  illuminating  purposes  automatic  penny-in-the- 
slot  meters  were  introduced.  For  two  cents  a  large 
burner  could  be  supplied  for  a  period  of  five  hours. 
Furthermore,  the  city  inaugurated  the  policy  of  renting 
gas  stoves,  making  all  connections  free  of  charge.  At 
first  the  use  of  automatic  meters  was  small,  but  with  each 
year  the  number  has  increased  until  they  have  become 
almost  universal  in  the  larger  British  cities.  With  each 
year  the  number  of  gas  stoves  rented  by  the  city  is 
increasing. 

The  influence  of  this  more  general  use  of  gas  is 


THE    MUNICIPALITY    AND    GAS    SUPPLY    267 

evident  to  anyone  examining  the  standard  of  life  of  the 
working  classes  in  Great  Britain.  The  use  of  cooked 
foods  is  far  more  general  than  was  the  case  ten  years 
ago.  That  this  change  has  had  an  influence  upon  the 
health  and  industrial  efficiency  of  the  population  is 
attested  by  the  testimony  of  the  local  sanitary  officers. 
Furthermore,  through  the  low  price  of  gas,  the  city  has 
been  able  to  exert  an  influence  upon  industrial  condi- 
tions. The  introduction  of  the  gas  engine  to  replace 
the  steam  engine  has  given  a  new  lease  of  life  to  the 
small  manufacturer. 

In  pursuing  this  policy  in  the  administration  of  the 
gas  works  the  British  cities  have  been  carrying  out  a 
general  principle  which  pervades  the  management  of 
all  their  quasi-public  works.  The  municipal  street-rail- 
way systems  are  being  used  to  effect  a  more  equable  dis- 
tribution of  population;  the  municipal  water  supply 
furnishes  hydraulic  power  at  low  rates ;  and  the  munici- 
pal gas  supply  is  contributing  to  the  improvement  of 
the  standard  of  life  and  of  the  industrial  efficiency  of 
the  population.  The  municipality  for  this  reason  rep- 
resents a  far  more  positive  force  in  the  life  of  the  British 
city  than  in  the  United  States.  That  American  munici- 
palities must  in  time  perform  the  same  functions  is  evi- 
dent to  anyone  who  has  followed  the  course  of  municipal 
development  in  this  country.  To  relinquish  public  works 
means  simply  to  postpone  the  period  when  such  service 
is  to  be  performed. 


268     PROBLEMS    OF    CITY    GOVERNMENT 

From  whatever  point  of  view  the  change  of  policy 
in  Philadelphia  be  examined,  the  conclusion  that  it 
marked  a  retrograde  movement  is  unavoidable.  This  is 
particularly  true  when  examined  from  the  standpoint 
of  civic  progress.  The  recent  history  of  American  mu- 
nicipalities has  shown  that  the  inability  of  our  city 
governments  to  maintain  control  over  private  corpora- 
tions performing  quasi-public  functions  is  the  greatest 
danger  to  American  local  institutions.  It  is  scarcely  an 
exaggeration  to  say  that  these  corporations  have  suc- 
ceeded in  intrenching  themselves  as  the  real  power  be- 
hind the  constituted  authorities  in  all  matters  affecting 
their  interests. 

We  usually  take  for  granted  that  the  most  effective 
means  of  eliminating  corruption  is  to  reduce  to  a  mini- 
mum the  functions  which  the  municipality  performs, 
and  are  surprised  to  find  that  this  method  in  reality 
increases  the  evil.  The  cause  lies  on  the  surface.  With 
every  diminution  of  city  functions  we  increase  the  influ- 
ence of  irresponsible  corporate  bodies.  The  real  prob- 
lem before  us  is  to  eliminate  such  corporate  influence. 
Until  this  is  done  all  efforts  for  more  efficient  admin- 
istration are  almost  certain  to  fail  of  their  purpose. 
The  classes  that  should  furnish  leaders  in  our  civic  life 
are  bent  upon  maintaining  the  supremacy  of  private 
interest  over  public  welfare.  Attachment  to  the  city 
is  not  sufficiently  strong  in  American  communities  to 
withstand  the  temptation  of  private  gain.  The  absence 


THE    MUNICIPALITY    AND    GAS    SUPPLY    269 

of  city  ideals  makes  the  citizen  feel  that  the  responsi- 
bility for  the  safeguarding  of  public  interests  rests  with 
the  constituted  authorities  rather  than  with  himself. 
To  those  who  have  studied  the  growth  of  our  large  cities, 
the  introduction  of  a  new  and  powerful  corporation  into 
the  public  life  of  the  community  means  another  obstacle 
to  civic  advance.  As  regards  Philadelphia,  the  danger 
has  been  increased  by  the  fact  that  the  monopoly  of  the 
street-railway  and  the  gas  and  electric-light  services  is 
vested  in  the  same  combination  of  individuals. 

At  a  time  when  the  true  relation  between  municipal 
activity  and  social  progress  is  finding  acceptance  with 
a  constantly  increasing  percentage  of  our  population, 
it  seems  peculiarly  unfortunate  that  Philadelphia  should 
offer  so  discouraging  an  example  to  American  cities.  In 
England  and  Scotland  some  270  and  in  Germany  over 
335  municipalities  own  and  operate  their  gas  works, 
with  an  efficiency  which  private  corporations  would 
find  difficult  to  equal  and  certainly  could  not  surpass. 
Whether  the  cities  of  the  United  States  will  develop 
an  equally  efficient  administration  remains  to  be  seen. 
Whatever  be  the  steps  in  the  process,  it  is  certain  that 
no  single  and  sudden  change  will  effect  the  desired  end. 
The  population  must  be  prepared  to  meet  temporary  dis- 
couragements and  to  withstand  the  temptation  to  throw 
off  the  burden  of  public  service  in  favor  of  private  agen- 
cies. Until  this  is  done,  until  we  are  able  to  discrimi- 
nate more  clearly  between  the  temporary  and  perma- 


270     PROBLEMS    OF    CITY   GOVERNMENT 

nent  interests  of  our  municipalities,  the  road  to  good 
city  government  will  remain  closed.  Though  logical 
deduction  and  a  priori  reasoning  may  furnish  all  sorts 
of  simple  remedies  the  order  of  historical  development 
is  more  complex,  encountering  difficulties  that  must  be 
consciously  met  by  every  progressive  society.  Tempo- 
rary expedients  may  postpone  but  they  cannot  avoid  the 
necessity  of  facing  fairly  and  squarely  the  vital  prob- 
lems of  governmental  activity.  Their  successful  solution 
soon  becomes  the  requisite  for  civic  advance. 

REFERENCES 

BRYCE,  JAMES.      "American  Commonwealth"  (Gas  Ring),  vol. 

ii,  Chap.  89.     New  York:  Macmillan,  1893. 
"City  Government  of  Philadelphia,"  Chap.  viii.    Wharton  School 

of  Finance  and  Commerce,  University  of  Pennsylvania. 
"Gas  Works,  Philadelphia."    Citizens'  Municipal  Association, 

1898. 
JAMES,  E.  J.     "  Relation  of  the  Modern  Municipality  to  the  Gas 

Supply."    Publications   American   Economic   Association, 

vol.  i,  Nos.  2,  3,  1886. 

Report  Councils  Committee,  Philadelphia,  1895. 
Report  Pennsylvania  Senate  Investigating  Committee,  1896. 
ROWE,  L.  S.     "The  Municipality  and  the  Gas  Supply."    Annals 

of  the  American  Academy  of  Political  and  Social  Science, 

May,  1898. 
"Relation   of   the   City   of   Philadelphia   to   the   Gas 

Supply."    National  Civic  Federation  Report,  Part  II,  vol.  i. 

New  York,  1907. 


CHAPTER   XII 

FUNDAMENTAL    PRINCIPLES    INVOLVED    IN    MUNICIPAL 
OWNERSHIP 

THE  discussion  of  the  relation  of  the  municipality 
to  quasi-public  works  has  been  obscured  by  the  desire 
to  find  some  one  general  principle  of  universal  applica- 
bility which  will  furnish  a  ready  solution  for  every 
question  affecting  the  relation  of  the  municipality  to 
public  utilities.  The  futility  of  this  plan  is  attested 
by  the  fact  that  the  principles  thus  formulated  have 
been  so  vague  that  they  have  furnished  no  real  guid- 
ance. The  failure  of  these  attempts  at  sweeping  gen- 
eralization is  gradually  developing  a  more  healthful 
attitude  toward  this  question.  We  are  beginning  to  see 
that  the  most  that  we  can  hope  to  accomplish  is  to  arrive 
at  some  agreement  on  certain  fundamental  principles 
which  govern  the  industries  that  are  "  affected  with 
the  public  interest."  The  application  of  these  princi- 
ples to  concrete  problems  must  depend  on  the  peculiar- 
ities of  local  conditions. 

Viewing  the  subject  from  the  broad  standpoint  of 
the  social  interests  of  the  community,  it  is  important 
to  bear  in  mind  that  in  all  these  industries — street  rail- 

271 


272   PROBLEMS  OF  CITY  GOVERNMENT 

way,  gas,  electric  light,  or  water — the  consideration  of 
primary  interest  to  the  community  is  the  kind  of  serv- 
ice which  it  enjoys.  The  industrial  efficiency,  the  social 
welfare,  and  the  general  well-being  of  the  population 
depend  to  so  large  an  extent  upon  the  efficient  per- 
formance of  these  services  that  every  other  consideration 
must  be  subordinated  to  this  end.  It  is  assumed  by 
the  opponents  of  municipal  ownership  that  no  city  can 
hope  to  offer  these  services  with  anything  like  the  same 
degree  of  efficiency  as  the  private  corporation.  This 
contention  is  quite  as  wide  of  the  mark  as  the  statement 
of  the  advocates  of  municipal  ownership  that  under  all 
conditions  the  city  is  able  to  offer  better  service. 

In  so  far  as  experience  may  serve  as  a  guide,  the 
results  accomplished  in  the  cities  of  Great  Britain  dem- 
onstrate not  only  the  possibility  of  offering  efficient 
service,  but  the  actual  superiority  of  municipal  over 
private  management,  especially  in  accomplishing  those 
larger  social  purposes  which  constitute  the  highest  func- 
tion of  communal  life.  The  contribution  which  the  Brit- 
ish cities  have  made  to  social  and  industrial  progress  is 
the  brightest  chapter  in  the  history  of  modern  city  de- 
velopment. In  lowering  street-railway  fares,  in  foster- 
ing the  extension  of  the  gas  service,  in  striving  con- 
stantly to  improve  the  water  service,  the  British  cities 
have  given  to  the  world  a  valuable  lesson  in  the  possi- 
bilities of  organized  action  in  improving  social  condi- 
tions. All  the  indictments  that  have  been  brought 


MUNICIPAL    OWNERSHIP  273 

against  municipal  ownership  and  operation  in  Great 
Britain  must  be  quashed  when  tested  by  the  services 
which  these  municipalities  have  performed  in  improv- 
ing the  city  environment,  in  making  city  life  more 
healthful,  in  removing  many  of  the  causes  of  disease 
and  of  reduced  vitality,  and  in  opening  a  new  horizon 
of  the  possibilities  of  communal ''action  in  raising  the 
plane  of  city  life. 

There  is  a  widespread  belief  that  the  lessons  of 
European  experience  in  general,  and  British  experience 
in  particular,  are  of  little  or  no  value  to  our  American 
cities.  The  tremendous  social  significance  of  the  move- 
ment for  the  municipalization  of  public  utilities  is  dis- 
missed with  the  statement  that  the  conditions  in  the 
United  States  are  totally  different  from  those  in  Eu- 
rope. That  there  are  important  differences  in  social 
organization,  in  the  attitude  of  the  population  toward 
government,  and  in  the  traditions  of  the  public  service, 
no  one  will  deny ;  but  in  spite  of  these  differences  the 
fact  remains  that  the  municipalities  of  Great  Britain 
and  of  Germany  have  become  positive  factors  in  the 
betterment  of  social  conditions.  Sooner  or  later  Ameri- 
can municipalities  must  place  themselves  in  the  same 
vital  relation  to  the  life  of  the  community.  In  fact,  the 
people  have  a  right  to  demand  that  the  street-railway, 
the  gas,  the  electric-light,  and  the  water  services  shall 
be  so  performed  as  to  further  the  larger  ends  of  social 
welfare.  How  shall  these  ends  be  attained  ?  In  answer- 


274      PROBLEMS    OF    CITY   GOVERNMENT 

ing  this  question  there  are  certain  facts  of  American 
experience  which  deserve  careful  consideration. 

It  is  generally  agreed  that  the  overwhelming  need 
of  our  American  communities  is  the  development  of  a 
distinctive  city  spirit.  Whatever  the  dangers  involved 
in  the  extension  of  municipal  functions  it  is  clear  that 
this  spirit  will  develop  in  proportion  as  the  munici- 
pality becomes  a  vital  factor  in  the  life  of  the  individ- 
ual. Some  may  be  willing  to  postpone  the  development 
of  this  civic  spirit,  others  may  think  it  bought  too 
dearly,  but  we  cannot  expect  it  to  gather  strength  until 
the  municipality  is  affecting  the  life  and  the  conduct  of 
the  individual  in  so  many  different  ways  that  he  asso- 
ciates the  city  with  the  maintenance  of  his  individual 
and  family  welfare. 

Furthermore,  although  we  may  do  full  justice  to  the 
spirit  of  enterprise  which  most  public-service  corpora- 
tions in  the  United  States  have  shown,  we  cannot  close 
our  eyes  to  the  fact  that  they  have  exerted  an  unfor- 
tunate influence  on  the  civic  life  of  American  commu- 
nities. There  is  hardly  a  city  in  the  country  which  has 
been  free  from  that  degrading  influence  which  is  pro- 
duced by  the  desire  of  public-service  corporations  to  con- 
trol local  policy.  We  have  attempted  to  cover  up  the 
situation  with  many  neat  phrases,  and  have  even  con- 
doned the  action  of  these  corporations  with  the  explana- 
tion that  they  did  not  desire  to  control  local  policy,  but 
were  compelled  to  do  so  for  their  own  protection.  It  is 


MUNICIPAL    OWNERSHIP  275 

not  necessary,  in  this  connection,  to  weigh  the  rights 
and  wrongs  of  the  situation,  but  it  is  a  matter  of  the 
deepest  concern  that  the  public-service  corporations  have 
undermined  the  civic  life  of  many  American  cities. 

If  we  are  to  retain  our  present  system  of  private 
management,  the  most  serious  question  confronting 
American  municipalities  is  the  elimination  of  corporate 
influence  from  their  political  life.  Various  plans  for 
the  accomplishment  of  this  purpose  have  been  sug- 
gested. Some  pin  their  faith  to  the  publicity  of  cor- 
porate accounts  as  the  most  effective  means  of  prevent- 
ing the  more  insidious  forms  of  corruption.  Others 
have  advocated  the  public  sale  of  all  franchises,  while 
others  regard  the  control  over  capitalization  of  public- 
service  companies  as  the  most  effective  remedy.  No 
doubt  each  of  these  will  contribute  something,  and  their 
combined  influence  will  certainly  make  more  difficult 
the  kind  of  bargaining  which  has  disgraced  so  many  of 
our  American  communities. 

In  the  last  analysis,  however,  the  only  permanent 
safeguard  is  an  alert  public  opinion,  sensitive  to  every 
influence  that  tends  to  undermine  the  well-being  of  the 
community.  The  events  of  the  last  few  years  prove  con- 
clusively the  sensitiveness  of  corporate  management  to 
the  slightest  stirrings  of  public  opinion.  In  their  rela- 
tions with  the  public  authorities — federal,  state,  or  mu- 
nicipal— public-service  corporations  will  no  longer  per- 
mit themselves  the  practices  that  were  common  five  years 


276      PROBLEMS    OF    CITY    GOVERNMENT 

ago.  The  education  of  public  opinion  in  municipal 
affairs,  which  has  been  pushed  with  such  vigor  during 
the  last  few  years,  must  now  be  systematized  and  made 
general  throughout  the  United  States.  Every  commu- 
nity in  the  country  stands  in  need  of  agencies  such 
as  the  Municipal  Research  Bureau  of  New  York  City, 
to  place  the  public  in  full  possession  of  the  facts  con- 
cerning municipal  services. 

/  The  same  forces  that  have  developed  this  sensitive- 
ness of  public  opinion  to  the  corrupting  influences  of 
public-service  corporations  have  also  led  to  a  demand  for 
greater  regulative  control,  which  is  likely  to  produce 
far-reaching  consequences.  With  the  education  of  pub- 
lic opinion  the  demand  for  improved  service  becomes 
more  urgent.  If  the  companies  were  normally  capital- 
ized, these  demands  could  be  readily  met  without  en- 
dangering the  profitableness  of  the  enterprise.  The 
great  difficulty,  however,  is  that  almost  every  municipal 
public-service  corporation  in  the  United  States  is  highly 
overcapitalized.  The  tendency  toward  further  regu- 
lation will  soon  reach  a  point  at  which  these  companies 
no  longer  can  be  carried  on  at  a  profit.  In  fact,  the 
increasing  demands  of  public  opinion  for  more  careful 
regulation  are  likely  to  force  the  issue  sooner  than  we 
expect.  The  situation  of  a  great  number  of  public- 
service  corporations  in  American  cities,  and  especially 
the  street-railway  companies,  is  such  that  any  attempt 
at  adequate  regulation  is  likely  to  prove  embarrassing 


MUNICIPAL    OWNERSHIP  277 

and  may  even  force  some  into  bankruptcy.  Their  enor- 
mous overcapitalization  has  burdened  them  with  fixed 
charges  which  cannot  be  met  if  the  public  authorities 
either  demand  any  considerable  reductions  in  the  cost 
of  service  or  far-reaching  improvements  in  the  character 
of  the  service.  Companies  such  as  the  Interborough- 
Metropolitan  of  New  York  or  the  Rapid  Transit  Com- 
pany of  Philadelphia  cannot  at  the  same  time  meet  the 
requirements  of  an  advancing  public  opinion  and  pay 
dividends  on  their  inflated  capitalization. 

Fortunately,  we  no  longer  look  with  the  same  dis- 
trust on  the  possibilities  of  municipal  ownership  and 
operation.  The  bugbear  of  socialism  has  given  way  to 
a  more  rational  view  of  the  possibility  of  promoting 
social  welfare  through  the  improvement  of  these  serv- 
ices under  municipal  management.  We  are  beginning 
to  see  that  the  old-time  fear,  that  the  increase  of  mu- 
nicipal functions  would  lead  to  an  inordinate  increase 
of  city  officials,  is  a  danger  certainly  no  greater  than 
the  interference  of  public-service  corporations  in  mu- 
nicipal politics.  The  dispassionate  and  unbiased  con- 
sideration of  British  experience  has  weakened  many  in- 
herited prejudices  and  misconceptions.  We  now  fully 
appreciate  the  fact  that  while  municipal  ownership  and 
operation  may  involve  some  dangers,  there  are  also 
many  incidental  advantages.  The  cities  of  Great  Brit- 
ain and  of  Germany  present  the  picture  of  municipal 

services  adjusted  so  as  to  improve  the  social  welfare  of 
19 


278     PROBLEMS    OF    CITY    GOVERNMENT 

the  community.  A  reduction  of  from  fifty  to  seventy- 
five  per  cent  in  street-railway  fares,  such  as  occurred 
with  the  change  from  private  to  public  ownership  in 
Great  Britain,  possesses  a  significance  far  greater  than 
any  profits  which  the  management  of  the  enterprise 
might  show.  It  means  the  extension  of  the  habitable 
city  area,  better  housing  conditions,  and  new  possibili- 
ties of  recreation  and  enjoyment.  The  influence  of  an 
improved  water  supply  is  shown  in  the  declining  death 
and  sickness  rates.  It  is  a  significant  fact  that  those 
British  cities  which  have  a  municipal  water  supply  en- 
joy the  lowest  typhoid  rate.  Similarly  the  reduction  in 
the  price  of  gas  has  raised  the  standard  of  life  of  the 
working  classes,  not  only  by  the  introduction  of  gas  as 
an  illuminant,  but  by  its  wider  use  for  cooking  pur- 
poses. 

This  record  of  accomplishment  indicates  that  in 
Great  Britain  and  Germany  the  city  means  something 
more  than  the  protector  of  property.  Its  activities  are 
in  vital  touch  with  the  life  and  welfare  of  the  people. 
The  life  of  the  community  has  been  so  deeply  influenced 
through  the  municipal  operation  of  public  utilities  that 
there  is  no  thought  of  a  return  to  private  management. 
It  is  a  remarkable  fact  that  the  extension  of  municipal 
activities  both  in  Germany  and  Great  Britain  has  not 
been  accompanied  by  any  increase  in  taxation.  In  fact, 
many  of  the  services  undertaken  have  contributed 
toward  a  reduction  in  taxation,  but  even  if  taxation  had 


MUNICIPAL    OWNERSHIP  279 

been  increased  it  would  be  no  conclusive  argument 
against  municipal  operation,  for  in  both  the  British 
and  the  German  cities  the  returns  looked  for  have  been 
rather  in  the  improved  health  and  efficiency  of  the  com- 
munity than  in  large  profits.  It  is  true  that  municipal 
indebtedness  has  grown,  but  the  productive  enterprises 
upon  which  the  cities  have  embarked  are  able  to 
take  care  of  the  interest  and  liquidation  of  this  in- 
debtedness. 

Public  opinion  in  the  United  States  with  reference 
to  municipal  activities  is  rapidly  advancing.  We  are 
beginning  to  appreciate  the  fact  that  the  city  in  its 
organized  capacity  is  called  upon  to  play  an  important 
part  in  the  struggle  for  the  elimination  of  poverty,  the 
increase  of  individual  efficiency,  and  the  improvement 
of  moral  and  physical  vigor.  Furthermore,  we  can  no 
longer  tolerate  the  opposition  of  interest  between  public 
welfare  and  private  gain  which  has  so  long  existed  in 
American  municipalities.  Incalculable  harm  has  been 
done  to  our  city  life  by  the  reluctance  of  the  stock- 
holders of  public-service  corporations  to  participate  in 
any  movement  that  might  result  in  a  reduction  of  the 
profits  of  such  companies.  The  elimination  of  this  oppo- 
sition of  interests  through  municipal  ownership  will 
mean  a  great  moral  gain  to  the  community,  and  will 
prepare  the  way  for  the  development  of  that  broader 
civic  concept  which  will  give  to  the  modern  city  the 
same  hold  on  the  energies,  loyalty,  and  affection  of  the 


280      PROBLEMS    OF    CITY    GOVERNMENT 

people  as  was  exercised,  in  their  day,  by  the  cities  of 
Greece  and  Rome. 

REFERENCES 

FAIRLIE,  J.A.     "Municipal  Administration."     New  York :  Mac- 

millan,  1908. 
"Municipal  and  Private  Operation  of  Public  Utilities."     New 

York,  National  Civic  Federation,  1907. 
"Relation  of  Modern  Municipalities  to  Quasi-Public  Works." 

Publications  American  Economic  Association,  vol.  ii,  No. 

6,  1888. 
S ALTER,  W.  M.     "Relation  of  Municipalities  to  Quasi-Public 

Corporations."    National  Municipal  League,  1896. 
ZUEBLIN,    C.     "American    Municipal    Progress."    Macmillan, 

1902. 


CHAPTER    XIII 

MUNICIPAL   OWNERSHIP   AND   OPERATION   OF   STREET 
RAILWAYS   IN   GERMANY 

THE  introduction  of  the  electric  railway  marks  a 
turning  point  in  the  history  of  street-railway  develop- 
ment in  Germany.  It  inaugurated  a  movement  toward 
municipal  ownership  and  operation  which  is  sweeping 
over  the  empire,  and  which  includes  not  only  the  larger 
cities,  such  as  Munich,  Frankfort,  Cologne,  and  Niirn- 
berg,  but  small  towns,  such  as  Bonn,  Trier,  Colmar,  and 
Graudenz.  The  radical  change  in  public  opinion,  as 
well  as  in  the  attitude  of  the  town  authorities  toward 
the  question  of  municipal  ownership  and  operation,  is 
due  in  part  to  the  feeling  of  antagonism  toward  the 
street-railway  companies ;  an  antagonism  traceable  to  the 
never-ceasing  struggle  to  secure  from  them  something 
approaching  efficient  service.  A  further  factor  which 
has  exerted  no  small  influence  is  the  fact  that  the  intro- 
duction of  electricity  simplified  considerably  the  condi- 
tions of  street-railway  management,  and  made  the  town 
authorities  less  reluctant  to  assume  the  burden  of  this 
new  function.  It  is  a  significant  fact  that  during  the 
entire  horse-railway  period  but  two  towns,  both  of  less 

281 


282      PROBLEMS    OF    CITY    GOVERNMENT 


than  10,000  inhabitants — Wiesloch  and  Friedrichshagen 
— owned  and  operated  their  street-railway  systems. 

The  communalization  of  street  railways  began  in 
Great  Britain  at  a  much  earlier  date  than  in  Germany. 
As  early  as  1897  forty -two  British  towns  had  acquired 
title  to  their  street-railway  systems,  and  eight  of  these 
(viz.,  Glasgow,  Hull,  Huddersfield,  Blackpool,  Leeds, 
Sheffield,  Plymouth,  and  Birmingham)  had  embarked 
upon  municipal  operation.  Not  until  1898  did  one  of 
the  larger  German  cities — Frankfort — commit  itself  to 
the  principle  of  municipal  ownership  and  operation. 

It  may  seem  surprising  at  first  glance  that  while  the 
movement  for  the  municipalization  of  gas  plants  of  Ger- 
man cities  began  in  the  early  sixties,  there  seemed  to  be 
little  or  no  desire  to  take  over  the  street  railways.  In 
1902  fifty-six  of  the  seventy -three  cities,  with  a  pbpula- 

OWNERSHIP  OP  GAS  PLANTS 


18 

68 

18 

85 

1895 

WITH  POPULATION  OF 

Pri- 
vate 

Munic. 

Pri- 
vate 

Munic. 

Pri- 
vate 

Munic. 

Under  5000  .  

90 

34 

88 

36 

70 

46      (28)  > 

Between  5,000-10,000. 
Between  10,000-20,000. 
Between  20,000-50,000  . 
Over  50,000 

74 
66 
16 
12 

69 
45 
17 
10 

71 
81 
33 

17 

102 
74 
41 
29 

83 
55 
33 
13 

111     (89) 
99     (61) 
76     (40) 
35     (16) 

258 

175 

290 

282 

254 

367  (234) 

1  Figures  in  parentheses  represent  the  number  of  cities  in  which 
the  gas  supply  was  made  municipal  at  the  time  of  its  introduction. 


tion  of  50,000  and  over,  owned  and  operated  their  gas 
plants.  The  course  of  development  is  shown  in  greater 
detail  in  the  foregoing  table.1 

The  municipal  gas  plants  were  successful  beyond  the 
expectation  of  the  advocates  of  municipal  ownership. 
The  influence  of  these  municipal  plants  was  not  con- 
fined to  the  cities  concerned,  but  also  raised  the  stand- 
ard of  service  in  those  communities  in  which  the  gas 
supply  was  still  in  the  hands  of  private  companies.  In 
fact,  between  1850  and  1890  the  efficiency  of  the  most 
important  municipal  services,  such  as  water  supply, 
lighting,  sanitation,  and  poor  relief,  was  raised  to  a 
point  which  placed  the  cities  of  Germany  in  the  van- 
guard of  municipal  improvement. 

In  the  midst  of  this  general  betterment  of  municipal 
conditions,  urban  transportation  remained  in  a  most 
primitive  state.  In  fact,  it  was  not  until  1865  that  the 
first  street-railway  line  was  built — a  short  experimental 
line  between  Berlin  and  Charlottenburg.  Not  until 
1872,  twenty  years  after  the  introduction  of  street  rail- 
ways in  the  United  States,  was  the  construction  of  street- 
railway  lines  on  any  considerable  scale  begun.  Ham- 
burg had  no  street  railways  until  1866,  Stuttgart  until 
1868,  Munich  until  1876,  Cologne  until  1877,  and  Niirn- 


1  For  this  table,  as  well  as  other  assistance  in  the  preparation  of 
this  chapter,  the  author  begs  to  acknowledge  his  indebtedness  to  the 
work  of  Dr.  Hugo  Lindemann,  "  Arbeiterpolitik  und  Wirtschaf  tspflege 
in  der  Deutschen  Staedteverwaltung,"  Stuttgart,  1904. 


284     PROBLEMS    OF    CITY    GOVERNMENT 

berg  until  1881.  As  late  as  1900  there  were  still  nine 
cities  with  a  population  of  40,000  and  over  without  street 
railways. 

The  backwardness  of  this  service  was  due  in  great 
part  to  the  small  area  of  the  German  cities.  The  con- 
centration of  population  within  the  old  city  walls  made 
the  problem  of  urban  transportation  of  relatively  little 
importance.  Furthermore,  the  fact  that  in  the  German 
cities  of  the  70 's  and  '80 's  the  residence  and  business 
sections  were  not  separated,  tended  to  reduce  the  neces- 
sity for  improved  transit  facilities,  and  delayed  the 
development  of  a  true  appreciation  of  the  bearing  of 
rapid  transit  on  the  improvement  of  city  conditions.  It 
was  not  until  the  cities  of  Germany  began  to  extend 
their  areas  through  the  incorporation  of  suburban  dis- 
tricts that  the  problem  began  to  assume  vital  importance. 
When  the  city  authorities  were  awakened  to  the  tre- 
mendous social  value  of  a  well-developed  transportation 
system,  they  found  their  hands  tied  in  the  attempts  to 
secure  it.  The  franchise  grants  of  the  '70 's  and  '80 's 
were  generally  made  for  a  term  of  at  least  twenty-five, 
and  in  some  cases  for  forty  and  fifty  years.  Under  the 
terms  of  these  grants  the  street-railway  companies  could 
not  be  compelled  to  extend  their  lines  into  the  suburban 
districts.  The  companies  were  not  disposed  to  take  any 
chances,  inasmuch  as  the  original  franchise  grants  im- 
posed heavy  financial  burdens  which  would  permit  of 
the  construction  of  lines  only  in  the  more  densely  popu- 


STREET    RAILWAYS    IN    GERMANY       285 

lated  sections.  The  efforts  to  secure  an  extension  of 
service  from  the  street-railway  companies  led  to  long 
negotiations,  and  gave  rise  to  considerable  bitterness 
of  feeling.  The  only  possible  solution  seemed  to  be  the 
expropriation  of  the  lines,  but  this  involved  expenditures 
which  would  have  taxed  the  credit  and  resources  of  the 
larger  cities  to  the  utmost,  and  would  have  been  entirely 
beyond  the  reach  of  the  smaller  cities. 

Fortunately,  the  necessity  for  better  service  became 
acute  at  a  time  when  the  street-railway  companies 
throughout  Germany  were  applying  for  the  right  to 
change  their  motive  power  from  horse  to  electric  trac- 
tion. The  new  system  was  so  much  more  efficient  and 
at  the  same  time  so  much  more  economical  that  no  com- 
pany could  afford  to  forego  its  use.  The  city  authorities 
found  themselves  therefore  in  an  entirely  new  relation 
to  the  companies.  Instead  of  being  petitioners  for 
favors,  they  held  the  key  to  the  situation.  The  position 
of  the  companies  was  further  weakened  by  the  fact 
that  in  most  of  the  larger  cities  the  franchises  granted 
during  the  '70  's  had  but  comparatively  few  years 
to  run. 

The  negotiations  between  the  city  authorities  and  the 
street-railway  companies  during  the  period  of  1890-1900 
constitute  one  of  the  most  interesting  chapters  in  the 
history  of  German  municipalities.  The  main  purpose 
of  the  negotiations,  so  far  as  the  cities  were  concerned, 
was  to  secure  the  construction  of  additional  lines  in  re- 


286  PROBLEMS  OF  CITY  GOVERNMENT 

turn  for  the  new  privileges.  Only  after  long-continued 
negotiations  had  demonstrated  the  impossibility  of  arriv- 
ing at  an  amicable  understanding  was  the  desirability  of 
municipalization  seriously  discussed. 

The  experience  of  Frankfort,  Munich,  Cologne,  and 
Niirnberg  is  typical  of  the  difficulties  encountered  in 
bringing  about  an  adjustment  to  the  new  conditions,  and 
also  explains  the  rapidity  with  which  the  movement  for 
municipalization  of  street  railways  has  spread  through 
the  cities  of  Germany. 


FRANKFORT-ON-THE-MAIN 

In  1880  the  city  of  Frankfort  granted  to  a  Belgian 
company  the  right  to  operate  a  railway  over  certain 
specified  streets.  The  duration  of  the  franchise  was 
limited  to  twenty-five  years,  but  the  city  reserved  the 
right  to  terminate  the  contract  at  the  expiration  of 
twelve  years  and  take  over  all  the  company's  lines.  If 
the  city  availed  itself  of  this  right,  the  company  was 
entitled  to  receive,  until  the  expiration  of  the  franchise 
in  1904,  an  annual  sum  equal  to  thirty  per  cent  of  the 
average  gross  income  during  the  three  years,  1890,  1891, 
and  1892.  If  the  city  preferred,  this  annual  payment 
was  to  be  capitalized  at  six  per  cent,  and  the  entire 
amount  paid  in  one  lump  sum.  In  return  for  the  fran- 
chise the  company  was  compelled  to  pay  to  the  city  five 


STREET    RAILWAYS    IN    GERMANY       287 

per  cent  of  the  gross  receipts  from  all  lines.  As  the 
expiration  of  this  first  twelve-year  period  approached  it 
became  evident  that  the  sentiment  in  favor  of  munici- 
palization  was  not  sufficiently  strong  to  lead  to  a  termi- 
nation of  the  contract.  On  March  24,  1891,  the  city 
entered  into  a  new  contract  with  the  company.  Under 
its  terms  the  city  agreed  to  extend  the  franchise  until 
December  31,  1914,  but  reserved  the  right  to  terminate 
the  contract  and  take  over  the  lines  either  on  January  1, 
1898,  or  on  January  1,  1906.  The  annual  payment  by 
the  company  to  the  city  was  fixed  at  six  per  cent,  with 
the  exception  of  certain  of  the  new  lines,  which  were 
classed  as  suburban,  and  from  the  gross  receipts  of 
which  the  company  was  only  compelled  to  pay  three 
per  cent.  The  contract  provided,  furthermore,  that  the 
company  pay  the  following  sums  into  the  city  treasury : 

During  the  first  two  years  of  the  franchise $7,500  annually 

During  the  following  three  years  of  the  franchise 10,000  annually 

During  the  following  five  years  of  the  franchise 12,500  annually 

During  the  following  five  years  of  the  franchise 15,000  annually 

During  the  following  five  years  of  the  franchise 17,500  annually 

During  the  following  five  years  of  the  franchise 20,000  annually 

In  addition,  if  the  company's  accounts  showed  a  net 
profit  exceeding  ten  per  cent,  the  city  was  entitled  to  one 
half  of  such  excess;  if  the  net  profits  exceeded  sixteen 
per  cent,  the  city  was  entitled  to  receive  two  thirds  of 
the  excess. 

The  rapid  growth  of  the  city  during  the  first  five 


288     PROBLEMS    OF    CITY    GOVERNMENT 

years  of  the  life  of  this  contract 1  clearly  demonstrated 
that  while  the  city  was  receiving  a  fair  return  for  the 
use  of  its  streets,  the  existing  lines  were  totally  inade- 
quate to  meet  the  needs  of  the  newer  sections  of  the  city. 
Both  branches  of  the  local  legislative  assembly — the 
council  and  the  ' '  Magistrat  ' ' 2 — determined  to  use  the 
right  to  terminate  the  contract  as  a  weapon  to  compel 
the  company  to  construct  much-needed  lines  in  the  out- 
lying districts  of  the  city.  Although  the  possibility  of 
placing  the  street-railway  system  under  municipal  oper- 
ation was  discussed,  the  sentiment  was  not  sufficiently 
strong  to  make  this  step  seem  probable.  The  negotia- 
tions between  the  company  and  the  city  were  prolonged 
but  fruitless.  The  situation  was  complicated  by  the  fact 
that  the  company  was  anxious  to  change  its  motive 
power  from  horse  to  electricity,  for  which  privilege  the 
city  was  also  determined  to  exact  a  quid  pro  quo.  The 
only  solution  for  the  deadlock  which  ensued  was  the  ter- 
mination of  the  contract  between  the  city  and  the  com- 


1  According  to  the  census  of  1900,  the  population  of  the  city 
proper  was  288,989,  but  including  the  suburban  districts  within  a 
radius  of  six  miles  from  the  center  of  the  city,  which  in  reality  form 
part  of  the  city,  the  total  population  dependent  upon  the  street-rail- 
way lines  of  the  city  amounts  to  over  400,000  (436,792). 

2  The  "Magistrat"  of  the  Prussian  cities  is  one  of  the  organs  of 
local  government  combining  executive  with  legislative  functions. 
The  individual  members  are  the  heads  of  administrative  departments. 
As  a  legislative  body  the  "Magistrat"  occupies  a  position  similar  in 
some  respects  to  that  of  the  upper  branch  of  the  American  town 
council. 


STREET    RAILWAYS    IN    GERMANY       289 

pany.  On  November  10,  1896,  the  city  gave  notice  that 
it  would  take  over  the  lines  on  January  1,  1898.  The 
reluctance  of  the  city  authorities  was  all  the  greater 
because  the  decision  involved  a  heavy  financial  burden, 
as,  under  the  terms  of  the  contract,  the  city  had  agreed 
that  in  case  it  decided  to  take  over  the  lines  it  would 
pay  to  the  company,  until  the  expiration  of  the  franchise 
in  1914,  an  annual  sum  equal  to  thirty  per  cent  of  the 
average  gross  income  of  the  years  1895,  1896,  and  1897. 
Although  the  street-railway  lines  became  the  prop- 
erty of  the  city  on  January  1,  1898,  the  authorities 
were  unwilling  immediately  to  assume  the  burdens  in- 
volved in  municipal  operation.  The  "  Magistrat,"  in  a 
report  submitted  to  the  council,  laid  special  emphasis 
on  the  difficulties  incident  to  the  change  from  horse 
power  to  electricity,  and  pointed  out  that  no  matter 
how  carefully  the  change  was  planned  it  would  cer- 
tainly cause  considerable  inconvenience.  In  these  cir- 
cumstances municipal  operation  would  be  introduced 
under  the  most  unfavorable  auspices.  In  order  to  avoid 
this,  the  city  adopted  a  plan  which  other  German  cities 
have  followed,  viz.,  to  lease  the  lines  for  a  brief  period 
to  the  same  company  to  which  the  contract  for  the  con- 
struction of  the  electrical  equipment  was  awarded.  In 
1898  a  contract  was  made  with  two  electrical  engineer- 
ing firms  for  the  transformation  of  the  horse  railway 
into  an  electrical  system,  and  for  the  construction  of  a 
number  of  additional  lines.  Under  the  terms  of  this  con- 


290     PROBLEMS    OF    CITY    GOVERNMENT 

tract  the  operation  of  the  entire  railway  system  was 
handed  over  to  the  construction  companies  for  a  term 
of  five  years,  with  the  reserved  right  on  the  part  of  the 
city  to  terminate  the  contract  prior  to  the  expiration  of 
the  five-year  period  by  giving  one  year's  notice. 


MUNICH 

The  successive  steps  leading  to  the  municipalization 
of  the  street-railway  system  of  Munich  x  are  of  peculiar 
interest,  owing  to  the  many  difficulties  and  discourage- 
ments which  the  municipal  authorities  had  to  face,  both 
in  their  dealings  with  the  company  during  the  period  of 
private  ownership  as  well  as  during  the  first  years  of 
municipal  ownership. 

In  1882  the  city  granted  to  the  Munich  Street  Rail- 
way Company  the  exclusive  right  to  operate  street  rail- 
ways within  the  city  limits.  Under  the  terms  of  this 
franchise,  the  company  was  required  to  pave,  repair, 
maintain,  and  clean  the  section  of  the  street  between 
the  rails  and  sixteen  inches  on  either  side  thereof.  The 
city  reserved  to  itself  the  right  to  do  all  such  paving, 
repairing,  and  cleaning,  and  to  charge  the  same  to  the 
company.  The  rates  of  fare  to  be  charged  by  the  com- 
pany were  minutely  specified.  The  lines  were  divided 
into  sections  of  three  fifths  of  a  mile  each.  For  each 

1  According  to  the  census  of  1900,  the  population  of  Munich 
was  499,932. 


STREET   RAILWAYS    IN   GERMANY       291 

section  the  charge  was  not  to  exceed  one  and  one  quarter 
cents,  but  the  company  was  permitted  to  fix  a  minimum 
fare  of  two  and  one  half  cents,  no  matter  how  short  the 
distance  traveled.  In  return  for  this  franchise  the  com- 
pany was  compelled  to  make  the  following  annual  pay- 
ments to  the  city  treasury : 

1.  Of  the  first  $250,000  gross  receipts,  two  (2)  per 
cent. 

2.  Of  the  succeeding  $12,500  gross  receipts,  two  and 
one  half  (2£)  per  cent. 

3.  Of  all  receipts  above  $262,500,  three  (3)  per  cent. 

The  contract  with  the  company  had  not  been  in  oper- 
ation five  years  before  controversies  arose  between  the 
city  and  the  company  relative  to  the  construction  of 
new  lines.  The  desire  on  the  part  of  the  authorities  to 
relieve  the  congestion  in  the  central  sections  of  the  city, 
combined  with  the  rapid  growth  of  the  population,  made 
the  extension  of  existing  lines  imperative.  The  com- 
pany was  unwilling,  however,  to  incur  the  expense  unless 
the  city  was  prepared  to  grant  terms  more  favorable  than 
those  of  the  original  contract.  Negotiations  with  the 
company  extending  over  a  period  of  four  years  having 
proved  fruitless,  the  ' '  Magistrat  ' ' 1  and  council  decided 

1  In  the  Bavarian  cities  the  "Magistrat"  occupies  the  same 
position  as  in  Prussia,  viz.,  exercising  both  executive  and  legislative 
functions.  The  members  of  the  "Magistrat"  are  elected  by  the 
council  subject  to  the  confirmation  of  the  central  government. 
The  members  of  the  council  are  elected  by  the  people  through  re- 
stricted suffrage. 


292      PROBLEMS    OF    CITY    GOVERNMENT 

to  build  the  new  lines.  They  were  not  prepared,  how- 
ever, to  take  over  the  operation  of  the  new  lines,  and 
therefore  entered  into  a  supplementary  contract  with 
the  street-railway  company  on  February  17,  1892,  under 
which  the  new  lines  were  handed  over  to  the  com- 
pany to  be  operated  for  the  account  of  the  city.  Under 
this  arrangement  the  company  was  permitted  first  to 
deduct  the  cost  of  operation  from  the  gross  receipts.  The 
remainder  of  the  income  was  then  divided  as  follows: 
The  city  first  to  receive  four  per  cent  on  the  cost  of 
construction,  two  per  cent  depreciation  charge,  and  a 
sum  equal  to  three  per  cent  of  the  gross  receipts.  The 
remainder,  if  any,  was  then  to  be  divided  between  the 
city  and  the  company  in  the  ratio  of  three  to  one.  This 
contract  of  February  17,  1892,  had  been  in  operation 
but  a  short  time  when  the  question  of  the  electrical 
equipment  of  the  entire  system  arose.  Further  nego- 
tiations with  the  company  resulted  in  the  signing  of  the 
contract  of  October  25,  1897,  according  to  the  terms  of 
which  the  entire  street-railway  system  became  the  prop- 
erty of  the  city.  Instead  of  taking  over  the  operation 
of  the  system,  it  was  stipulated  that  the  Munich  Street 
Railway  Company  should  continue  to  run  all  the  lines 
until  the  termination  of  the  original  franchise  period, 
viz.,  July  1,  1907.  Owing  to  the  fact  that  certain  sec- 
tions of  the  system  were  built  by  the  company  and 
certain  others  by  the  city,  the  adjustment  of  the  finan- 
cial relation  during  the  period  1897-1907  was  fraught 


STREET    RAILWAYS    IN    GERMANY       293 

with  considerable  difficulty.  The  agreement,  as  finally 
reached,  provided: 

First. — Inasmuch  as  the  introduction  of  electricity 
made  much  of  the  old  rolling  stock  worthless,  it  was 
necessary  to  make  a  large  outlay  for  new  equipment  and 
cars.  Instead  of  making  these  purchases  from  city 
funds,  the  contract  stipulated  that  all  such  purchases 
be  made  by  the  company  after  consulting  the  city  au- 
thorities, and  that  the  city  return  to  the  company  each 
year  the  amount  thus  expended.  For  the  renewal  of 
equipment  the  contract  provided  for  a  "  Renewal 
Fund, ' '  which  should  receive  at  least  six  per  cent  of  the 
gross  receipts. 

Second. — The  gross  receipts  from  lines  built  by  the 
city  must  be  paid  into  the  city  treasury,  in  return  for 
which  the  city  guaranteed  to  the  company  a  sum  suffi- 
cient to  pay  all  operating  expenses. 

Third. — The  gross  receipts  from  lines  built  by  the 
company  were  to  be  paid  into  the  city  treasury.  In 
this  case  the  city  guaranteed  to  the  company  not  only 
all  operating  expenses,  but  agreed  to  pay  to  the  company 
annually,  until  1907,  a  sum  equal  to  the  gross  profits  of 
the  year  1896-97,  viz.,  $230,804.76. 

Fourth. — The  contract  further  stipulated  that  the 
company  was  to  receive  twenty-five  (25)  per  cent  of  the 
net  profits. 

As  we  shall  see  when  we  come  to  consider  the  finan- 
cial results  of  municipal  ownership,  the  contract  of  the 


294  PROBLEMS  OF  CITY  GOVERNMENT' 

city  of  Munich  with  the  street-railway  company,  while 
most  profitable  to  the  company,  had  been  a  constant  drain 
on  the  resources  of  the  city.  Since  1897  the  stockholders 
have  enjoyed  a  guaranteed  dividend  of  eleven  per  cent, 
with  the  possibility  of  a  larger  dividend  if  a  net  profit 
remained  after  deducting  all  fixed  charges.  Until  the 
close  of  the  fiscal  year  1904-5  the  city  treasury  was 
compelled  each  year  to  meet  a  considerable  deficit.  The 
amount  of  this  deficit,  and  the  causes  thereof,  will  be 
considered  in  a  subsequent  section. 

COLOGNE 

The  duration  of  the  original  franchises  granted  to 
the  Cologne  Street  Railway  Company  ranged  from 
twenty-five  to  thirty  years,  but  were  made  at  different 
periods.  The  first  of  these  expired  in  1902,  another  will 
expire  in  1916,  and  still  another  in  1924.  Early  in  the 
nineties  the  city  authorities  suggested  to  the  company 
the  prolongation  of  certain  existing  lines  and  the  con- 
struction of  a  number  of  new  ones,  but  met  with  no 
encouraging  response.  As  in  Frankfort  and  Munich, 
the  situation  was  further  complicated  by  the  desire  of 
the  company  to  secure  the  right  to  equip  the  system 
with  electricity.  The  popular  clamor  for  improved 
transportation  facilities  became  so  strong  that  the  city 
decided  in  1896  to  undertake  the  construction  of  five 
new  lines  on  its  own  account,  and  to  equip  the  same  with 


electricity.  Here  a  new  difficulty  presented  itself.  The 
original  franchises  gave  to  the  company  the  exclu- 
sive right  to  run  cars  on  certain  streets.  As  soon  as 
the  resolution  of  the  city  council  became  known,  the 
company  gave  notice  that  it  would  contest  the  right  of 
the  city  to  construct  any  lines  which  would  directly  or 
indirectly  compete  with  the  existing  system.  To  make 
this  threat  effective,  the  company  immediately  applied 
for  an  injunction  to  restrain  the  city  from  building  the 
new  lines.  In  a  long  and  carefully  reasoned  opinion 
the  court  held  that  the  city  could  not,  without  violat- 
ing the  terms  of  the  franchise,  construct  any  new  lines 
which  would  compete  directly  with  the  existing  lines  of 
the  company.  An  appeal  was  taken  by  the  city  to  the 
Supreme  Court  of  Prussia,  and  finally  to  the  Imperial 
Supreme  Court,  but  with  the  same  result.  These  de- 
cisions placed  the  city  in  a  most  difficult  position.  The 
choice  lay  between  a  policy  which  meant  a  complete  sur- 
render to  the  company,  and  one  which,  by  delaying  the 
change  from  horse-power  to  electricity,  would  work 
great  harm  to  the  social  and  economic  welfare  of  the 
city. 

In  view  of  these  difficulties,  the  city  council,  by  reso- 
lution of  March  31,  1897,  decided  to  take  over  the  entire 
street-railway  system,  provided  an  agreement  could  be 
made  with  the  company.  A  commission  was  appointed 
to  report  a  plan.  The  commission  presented  a  report 
favorable  to  city  ownership  and  operation,  and  on  Janu- 


296      PROBLEMS    OF    CITY    GOVERNMENT 

ary  2,  1900,  a  contract  with  the  Cologne  Street  Railway 
Company  was  signed,  under  which  the  city  became 
owner  of  all  the  company's  lines.  It  is  true  that  the 
city  had  to  make  great  financial  sacrifices  in  order  to 
become  master  of  the  situation,  but  it  was  felt  that  a 
continuation  of  the  antagonism  between  the  company 
and  the  city  would  work  incalculable  harm  to  the  eco- 
nomic and  social  welfare  of  the  community.  Under  the 
terms  of  the  contract  the  city  agreed  to  take  over  all 
the  real  estate  and  rolling  stock  of  the  company;  the 
former  at  an  appraised  value  of  $661,795.60,  the  latter 
at  an  appraised  value  of  $333,995.  In  addition,  the  city 
agreed  to  pay  to  the  company  in  return  for  the  cancel- 
lation of  the  franchises  the  following  sums: 

First.  From  January  1, 1899,  to  June  30,  1913,  annually,  $250,000 
Second.  In  addition  the  following  sums: 

For  the  year  1903 $6,250 

For  the  year  1904 12,500 

For  the  year  1905 18,750 

For  the  year  1906 25,000 

For  the  year  1907 31,250 

For  the  year  1908 37,500 

For  the  year  1909 43,750 

For  the  year  1910 50,000 

For  the  year  1911 56,250 

For  the  year  1912 62,500 

For  the  half  year  January  1 ,  to  June  30, 1913. ...  34,375 

The  contract  was  given  retroactive  effect  in  provid- 
ing that  the  lines  were  to  be  regarded  as  belonging  to  the 
city  from  and  after  January  1,  1899,  but  that  the  com- 


STREET    RAILWAYS    IN    GERMANY       297 

pany  should  continue  to  run  the  same  for  the  city's 
account  until  such  time  as  might  be  necessary  to  perfect 
the  organization  under  city  operation.  On  April  1,  1900, 
all  the  lines  were  placed  under  city  management.  The 
city  was  given  the  privilege,  under  the  contract,  to  fulfill 
all  its  financial  obligations  toward  the  company  at  once 
by  capitalizing  the  annual  payments  and  making  pay- 
ment of  one  lump  sum.  Of  this  privilege  the  city  has 
not  as  yet  availed  itself. 

The  first  problem  confronting  the  city  was  to  equip 
the  entire  system  with  electricity.  In  fact,  Cologne  was 
the  last  of  the  larger  German  cities  to  retain  horse  power, 
and  the  city  authorities  therefore  felt  a  special  obliga- 
tion to  make  the  change  with  all  possible  speed.  Before 
the  close  of  1901  the  four  principal  lines  were  equipped 
with  electricity.  The  city  immediately  began  to  plan 
the  construction  of  a  number  of  new  lines  not  only 
within  the  city  limits,  but  also  to  connect  the  city  with 
the  smaller  suburban  towns.  During  the  fiscal  year 
1902—3  five  new  lines  within  the  city  limits  were  con- 
structed, the  following  year  a  number  of  existing  lines 
were  lengthened,  and  during  the  year  1904-5  the  city 
took  over  three  existing  suburban  lines. 


Nurnberg 

In  Nurnberg,  as  in  Frankfort,  Munich,  and  Cologne, 
the  municipalization  of  the  street-railway  system  was 


298      PROBLEMS    OF    CITY    GOVERNMENT 

forced  upon  the  community  because  of  the  impossibility 
of  securing  from  the  street-railway  company  the  kind 
of  service  which  the  rapidly  growing  city  required.  The 
original  franchises  were  granted  in  1881  for  a  period 
of  forty  years.  In  1897  the  Niirnberg-Further  Street 
Railway  Company  applied  for  permission  to  substitute 
electricity  for  horse  power.  On  August  13,  1897,  a  new 
contract  was  entered  into  under  which  the  company  was 
given  this  privilege.  In  view  of  the  great  expense  in- 
volved in  the  introduction  of  the  new  system  the  com- 
pany made  a  strong  plea  for  an  extension  of  the  fran- 
chise period  beyond  1921.  The  city  finally  agreed  to  an 
extension  of  five  years,  viz.,  until  1926,  provided  the 
company  would  undertake  the  construction  of  three  new 
lines. 

Within  a  comparatively  short  time  after  the  signing 
of  this  contract  the  city  authorities  began  to  realize  that 
they  had  made  a  serious  mistake.  Niirnberg  was  rapidly 
acquiring  a  position  as  one  of  the  leading  industrial 
cities  of  Germany.  Its  population  was  increasing  at  an 
extraordinary  rate.  In  1899  a  number  of  suburbs  had 
been  incorporated  into  the  city  limits,  and  in  the  imme- 
diate vicinity  were  a  number  of  smaller  towns,  which 
in  fact  formed  part  of  the  municipal  aggregate,  although 
not  legally  a  part  of  the  city.  It  was  evident  that  in 
order  to  relieve  the  congestion  of  population  in  the  city 
proper  an  elaborate  system  of  urban  and  interurban 
railways  would  be  necessary.  Negotiations  were  opened 


STREET    RAILWAYS    IN    GERMANY       299 

with  the  company  with  a  view  to  securing  such  exten- 
sions. The  company  in  its  reply  expressed  a  willing- 
ness to  make  all  the  extensions  desired,  provided  the  city 
was  willing,  first,  to  extend  the  original  franchises  be- 
yond 1926,  and  secondly,  to  guarantee  to  the  company 
a  net  profit  on  all  new  lines  equal  to  the  average  net 
profit  on  the  lines  included  in  the  original  franchises. 

The  apparent  onesidedness  of  this  proposition 
aroused  considerable  feeling  against  the  company,  which 
was  aggravated  by  differences  growing  out  of  the  inter- 
pretation of  the  contract  of  August  13,  1897.  Before 
the  close  of  1898  the  city  authorities  were  convinced 
that  the  only  possible  solution  of  the  problem  lay  in  the 
construction  of  the  new  lines,  either  by  some  other  com- 
pany or  by  the  municipality  itself.  Negotiations  were 
opened  with  another  company,  but  led  to  no  definite 
results.  The  authorities  were  convinced  by  this  time 
that  the  city  would  have  to  build  the  new  lines,  and  be 
prepared  to  take  over  their  operation.  In  December, 
1901,  application  was  made  to  the  Bavarian  Minister 
of  Internal  Affairs  for  leave  to  construct  and  operate 
certain  lines  both  within  and  without  the  city  limits. 
Soon  thereafter  the  necessary  permission  was  granted, 
but  objection  was  immediately  filed  by  the  company 
on  the  ground  that  the  new  lines  planned  would  com- 
pete directly  with  existing  lines,  and  were,  therefore, 
in  violation  of  the  terms  of  the  franchise.  The  city,  in 
its  reply,  not  only  contested  the  right  of  the  company 


300      PROBLEMS    OF    CITY    GOVERNMENT 

to  make  any  objection  to  the  proposed  lines,  but  sub- 
mitted a  more  elaborate  plan,  involving  the  construction 
of  a  far  greater  number  of  lines.  In  deciding  upon  this 
larger  plan  the  city  council  was  influenced  mainly  by 
the  fact  that  the  territory  incorporated  within  the  city 
limits  in  1899  was  without  adequate  transportation 
facilities.  It  was  hoped  that  cheap  and  sanitary  work- 
ingmen's  dwellings  would  be  constructed  in  these  quar- 
ters, and  in  order  to  encourage  this  larger  social  purpose 
the  city  extended  the  water,  gas,  and  drainage  services. 
It  was  evident,  however,  that  property  owners  would 
not  be  willing  to  build  until  an  efficient  and  relatively 
cheap  transportation  system  was  provided. 

On  July  7,  1902,  the  Bavarian  Government  gave 
permission  to  the  city  to  construct  the  larger  system, 
with  the  understanding  that  all  questions  affecting  the 
rights  of  the  company  be  settled  by  the  courts.  The 
company  had  already  filed  a  bill  to  restrain  the  city 
from  building  the  lines,  but  the  suit  was  brought  to  a 
sudden  close  by  the  announcement  that  the  city  had 
decided  to  purchase  all  the  company 's  lines,  and  that  an 
agreement  to  this  effect  had  been  reached.  Under  the 
terms  of  this  agreement,  which  was  ratified  by  the  com- 
pany on  October  20,  1902,  the  city  agreed  to  pay  to  the 
company  for  the  real  estate,  rolling  stock,  and  franchise 
$2,835,000,  i.  e.,  $525  for  every  share  of  stock  (par  value 
$250).  The  payment  wras  made  in  city  bonds,  bearing 
three  per  cent  interest.  The  bonds  began  bearing  inter- 


STREET    RAILWAYS    IN    GERMANY       301 

est  in  January,  1903,  but  for  the  year  1902  the  city 
agreed  to  guarantee  to  the  stockholders  a  dividend  of 
eight  per  cent.  The  net  profits  of  the  year  1902  not 
being  sufficient  to  pay  this  dividend,  the  city  was  obliged 
to  make  up  the  deficit  of  $6,605. 

On  June  6,  1903,  the  entire  system  passed  into  the 
hands  of  the  city.  Work  on  the  extension  of  the  lines 
was  immediately  begun.  Before  the  close  of  August, 
1903,  two  of  the  most  important  lines  had  been  extended 
to  the  suburbs  of  the  city.  During  the  fiscal  year 
1903-4  over  $80,000  were  expended  on  new  lines.  The 
city  also  reduced  the  fares  on  certain  lines  for  the  pur- 
pose of  relieving  the  congestion  of  population  in  the 
central  districts.  Thus,  after  a  long  struggle  extending 
over  seven  years,  the  city  authorities  found  themselves 
complete  masters  of  the  transportation  situation. 


THE  CONDITIONS  OF  MUNICIPAL  OPERATION 

(a)  FINANCIAL  RESULTS 

In  considering  the  results  of  municipal  management, 
it  is  important  to  bear  in  mind  that  in  all  the  German 
cities  which  have  adopted  this  policy,  and  particularly 
the  four  cities  now  under  consideration,  the  street-rail- 
way administration  is  struggling  under  exceptionally 
heavy  financial  burdens,  due  in  part  to  the  necessity 
of  large  outlays  for  the  construction  of  new,  and,  in  the 


302      PROBLEMS    OF    CITY    GOVERNMENT 

main,  unprofitable  lines,  but  mainly  owing  to  the  large 
indemnities  which  these  cities  were  compelled  to  pay 
for  the  unexpired  franchises.  A  further  fact  which  has 
had  considerable  influence  is  the  reaction  against  over- 
speculation,  from  which  many  of  the  German  cities  are 
at  present  suffering.  It  is  not  surprising,  therefore,  that 
the  first  years  of  municipal  management  do  not  show 
brilliant  results. 

Frankfort-on-the-Main 

Of  the  four  larger  cities  that  have  embarked  upon 
municipal  operation  of  street  railways,  the  financial  sit- 
uation of  the  Frankfort  system  is  the  most  favorable. 
At  the  close  of  the  fiscal  year  1903,  after  paying  all 
operating  expenses,  there  remained  a  surplus  of  $576,- 
574.25.  Out  of  this  the  following  fixed  charges  were 
paid: 

First.  Annual  payment  to  street-railway  company  (to 
be  paid  each  year  until  the  expiration  of  the 
original  franchise  in  1914) $82,080 . 00 

Second.  Interest  and  liquidation  charges  on  street-rail- 
way loan 140,666.72 

Third.  Depreciation  and  renewal  fund 56,250 . 00 

Fourth.  Contribution  to  general  administrative  ex- 
penses of  the  city 16,816.93 

$295,813.65 

From  the  remaining  $280,760.60,  the  city  contrib- 
uted $15,805  toward  the  pension  fund  for  employees, 


STREET    RAILWAYS    IN    GERMANY       303 

$4,057.50  toward  the  pension  fund  for  orphans  and 
widows  of  employees,  and  $36,250  toward  the  repaying 
and  widening  of  streets,  leaving  a  net  profit  of  $224,- 
648.10.  This  is  by  far  the  most  favorable  showing  since 
the  beginning  of  municipal  operation,  the  net  profits  of 
the  preceding  years  being  as  follows: 

NET  PROFITS 

1899 $85,921 .65 

1900 108,190.59 

1901 126,677.25 

1902 122,190.95 

These  results  are  not  due  to  exceptionally  favor- 
able traffic  conditions,  but  are  traceable  directly  to  care- 
ful and  economical  administrative  methods.  During  the 
period  between  1899  and  1903  the  cost  of  operation  per 
car  mile  1  was  reduced  from  13£  to  8f  cents,  while  the 
percentage  of  gross  receipts  required  for  operating  ex- 
penses was  reduced  from  68.29  per  cent  to  54.9  per 
cent.  This  compares  very  favorably  with  the  situation 
in  the  United  States,  where  the  relation  of  operating 
expenses  to  gross  income  for  all  the  electric  lines  is 
57.3  per  cent.  The  accompanying  tables  will  give  a 
clearer  idea  of  the  efficiency  of  municipal  management. 

The  receipts  per  car  mile  have  also  declined,  but  this 
is  due  to  circumstances  which  indicate  improvement  of 

1  The  term  "car  mile  "means  the  total  cost  of  operating  reduced 
to  a  unit  standard,  i.  e.,  the  cost  of  operating  each  car  over  a  distance 
of  one  mile. 


304      PROBLEMS    OF    CITY    GOVERNMENT 


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STREET    RAILWAYS    IX    GERMANY       305 


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306      PROBLEMS    OP    CITY    GOVERNMENT 

service  rather  than  decline  of  traffic.  During  the  five 
years  of  municipal  operation  from  1898  to  1903  the 
city  has  constructed  a  number  of  new  lines  in  relatively 
sparsely  settled  districts,  from  which  no  surplus  can  be 
expected  for  some  years  to  come.  Although  they  are 
certain  ultimately  to  prove  profitable,  the  city  has  had 
primarily  in  view  the  possibility  of  influencing  the  set- 
tlement of  outlying  districts. 

Munich 

We  have  already  had  occasion  to  examine  the  unfor- 
tunate financial  situation  of  the  Munich  system,  due  in 
large  part  to  the  extraordinarily  heavy  payments  which 
the  city  had  to  make  each  year  to  the  street-railway  com- 
pany as  indemnity  for  the  canceling  of  the  unexpired 
franchise.  The  deficit  for  the  fiscal  year  1904-5 
amounted  to  $32,747.03,  but  this  is  not  surprising  when 
we  stop  to  consider  that  the  budget  was  burdened  with 
the  annuity  payable  to  the  street-railway  company, 
amounting  to  $230,804.76.  Inasmuch  as  all  lines  be- 
longing to  the  city  were  operated  by  the  company  until 
1907,  the  period  of  municipal  operation  is  too  short  to 
draw  any  conclusions  with  reference  to  its  efficiency. 

Cologne 

In  considering  the  municipal  railway  system  of 
Cologne,  it  is  necessary  to  distinguish  between  the  dis- 


STREET    RAILWAYS    IN   GERMANY      307 

tinctly  urban  and  the  suburban  lines.  During  the  first 
few  years  of  municipal  operation,  especially  in  1901 
and  1902,  the  street  railways  of  Cologne,  as  of  all  the 
cities  of  Germany,  were  affected  by  the  general  eco- 
nomic depression  from  which  the  country  was  suffering. 
The  receipts  were  further  reduced  by  the  temporary 
disturbances  of  traffic  caused  by  the  change  of  equip- 
ment from  horse  power  to  electricity. 

The  fiscal  year  1901-2  showed  a  net  loss  of  $12,- 
145.54;  in  1902-3  there  was  a  net  profit  of  $21.51,  and 
in  1903^  a  net  profit  of  $130,816.06.  In  considering 
this  profit-and-loss  account  we  must  take  into  considera- 
tion that  the  city  is  compelled  to  pay  to  the  street-rail- 
way company  an  annuity  of  $314,319.15.  During  the 
last  four  years  the  city  has  been  able  steadily  to  reduce 
the  operating  expenses. 

The  city  owns  and  operates  three  suburban  lines,  one 
to  the  neighboring  town  of  Frechen,  another  to  Konigs- 
forst,  and  a  third  to  Ehrenfeld.  Under  the  Prussian 
law  any  community  operating  railway  lines  occupies  a 
legal  position  very  similar  to  that  of  a  private  corpora- 
tion. It  may  seek  franchises  from  neighboring  com- 
munities for  the  operation  of  such  lines,  and  is  held  to 
the  same  measure  of  obligation  as  a  private  company. 
In  1903  the  city  of  Cologne  entered  into  a  contract  with 
the  town  of  Frechen  to  take  over  the  line  constructed  in 
1893.  Under  the  terms  of  the  contract  Frechen  is  to 
receive  an  annuity  of  $12,500,  which  is  to  be  increased 


808      PROBLEMS    OF    CITY    GOVERNMENT 


annually  by  $250  until  it  reaches  $15,000.  Cologne 
agreed  furthermore  to  pay  into  the  treasury  of  Frechen 
one  third  of  the  net  profits,  and  to  equip  the  line 
with  electricity  with  the  least  possible  delay.  The  line 

MUNICIPAL  STREET  RAILWAYS  OF  COLOGNE 


1900-1901 

1901-1902 

Gross 

Per 

Gross 

Per 

receipts 

mile 

receipts 

mile 

Receipts  

$751,486.50 

cts. 
20J 

$801,350.75 

cts. 
?0 

Operating  expenses  

434,207.75 

12 

484,793.50 

12 

Surplus  

317,278.75 

316,557.25 

Relation  of  operating  ex- 

penses to  gross    receipts 

(in  per  cent)  

6050% 

1902-1903 

1903-1904 

Gross 
receipts 

Per 
car 
mile 

Gross 
receipts 

Per 
car 
mile 

Receipts  

$1,021,433.00 

cts. 

iei 

$1,249,536.75 

cts. 
15J 

Operating  expenses.  . 
Surplus.  ... 

621,611.00 
299,822.00 

11* 

706,461.25 
543,075  50 

8A- 

Relation  of  operating 
expenses  to  gross  re- 
ceipts (in  per  cent) 

60.85% 

56.54% 

is  of  considerable  importance  for  freight  as  well  as 
passenger  traffic;  in  fact,  since  1900  the  income  from 
freight  traffic  has  been  more  than  double  that  from 
passenger  traffic.  The  city  authorities  of  Cologne  were 


STREET    RAILWAYS    IN    GERMANY       309 

anxious  to  acquire  the  line  because  of  its  importance  to 
the  industrial  growth  of  the  city  rather  than  the  possibil- 
ities of  profit  involved.  During  the  first  year  of  munici- 
pal operation,  after  paying  the  annuity  of  $12,500  to  the 
town  of  Frechen,  there  remained  a  net  profit  of  nearly 
$1,000. 

The  second  of  the  Cologne  suburban  lines,  viz.,  from 
Cologne  to  Konigsforst,  is  the  first  section  of  a  network 
of  suburban  lines  on  the  right  bank  of  the  Rhine  which 
the  city  decided  to  build.  As  this  line  passes  through 
three  towns — Kalk,  Vingst,  and  Merheim — it  was  neces- 
sary first  to  enter  into  agreements  with  the  local  author- 
ities of  these  towns.  The  agreements  entered  into  are 
as  follows: 

First. — In  return  for  the  use  of  its  streets  the  town 
of  Kalk  is  to  receive  an  annuity  depending  on  the  net 
profits  of  the  section  running  over  its  highways.  It  is 
provided,  however,  that  in  no  case  shall  the  annuity  be 
less  than  $2,125  nor  more  than  $6,750. 

Second. — The  town  of  Vingst  received  a  lump  sum 
of  $1,250  to  be  expended  for  certain  street  improve- 
ments, and  in  addition  is  to  receive  an  annuity  depend- 
ing on  the  number  of  inhabitants,  and  graded  as 
follows:  2|  cents  per  inhabitant  per  year  so  long  as 
population  remains  under  10,000;  3f  cents  per  inhabi- 
tant per  year  for  population  between  10,000  and  15,000 ; 
5  cents  per  inhabitant  per  year  for  population  between 

15,000  and  19,999 ;  6£  cents  per  inhabitant  per  year  for 
21 


310      PROBLEMS    OF    CITY    GOVERNMENT 

population  between  20,000  and  29,999;  7£  cents  per 
inhabitant  per  year  for  population  over  30,000. 

Third. — The  town  of  Merheim  granted  the  right  to 
use  one  of  its  streets  for  $750,  a  sum  sufficient  to  make  a 
few  minor  repairs. 

The  third  suburban  line  operated  by  the  city  is  in- 
tended mainly  for  freight  traffic.  The  city  is  doing 
everything  in  its  power  to  encourage  the  establishment 
of  new  industries.  The  Cologne-Ehrenfeld  line  was 
acquired  mainly  with  a  view  to  improving  the  freight 
connection  with  the  state  railways. 


Nurnberg 

The  city  of  Nurnberg  did  not  come  into  full  posses- 
sion of  its  street-railway  system  until  June  6,  1903. 
During  the  brief  period  of  municipal  management  the 
city  authorities  have  shown  a  degree  of  business  capacity 
which  promises  to  place  the  system  in  the  front  rank  of 
the  German  street  railways.  As  soon  as  the  city  ob- 
tained complete  control  of  the  situation,  the  construc- 
tion of  the  new  lines  which  the  city  had  failed  to  obtain 
from  the  street-railway  company  was  begun.  Before  the 
end  of  August  two  of  the  main  lines  were  extended  into 
outlying  wards.  The  influence  of  the  improved  service 
in  relieving  congestion  in  the  older  portions  of  the  city 
was  immediately  apparent.  Two  new  lines  to  suburban 
towns  were  also  begun  without  delay.  The  following 


STREET    RAILWAYS    IN    GERMANY       311 

year  (1904)  the  belt  line,  encircling  the  entire  city,  was 
completed  through  the  construction  of  a  section  connect- 
ing the  terminals  of  two  existing  lines. 

The  financial  results  of  the  first  two  years  of  munic- 
ipal operation  have  been  satisfactory.  It  must  be  re- 
membered that  the  street-railway  account  is  burdened 
with  the  interest  and  liquidation  charges  on  the  loan 
contracted  for  the  canceling  of  the  company's  franchise. 
This  means  an  annual  outlay  for  thirty  years  of  about 
$138,000.  In  spite  of  this  fixed  charge,  the  street-rail- 
way department  turned  over  to  the  general  city  treasury 
a  net  profit  of  $13,669.89  in  1903  and  $38,263.91  in  1904. 
During  the  first  year  the  expense  per  car  mile  was  re- 
duced from  13^  cents  to  12  cents,  and  the  percentage 
of  total  receipts  used  for  operating  expenses  was  re- 
duced from  48.7  to  47.2  per  cent.  As  regards  economy 
of  management,  the  city  can  easily  hold  its  own  when 
compared  with  company  management.  The  street-rail- 
way accounts  under  the  two  forms  of  management  give 
ample  evidence  of  this  fact. 

(6)    PARES 

The  most  difficult  problem  confronting  the  German 
cities  which  have  embarked  upon  the  municipal  opera- 
tion of  street  railways  has  been  the  adjustment  of  fares. 
During  the  last  five  years  this  question  has  been  in  the 
foreground  of  public  attention.  Unfortunately,  the  pur- 


312      PROBLEMS    OF    CITY    GOVERNMENT 

poses  and  policies  which  the  city  authorities  had  in  mind 
at  the  time  the  street  railways  were  taken  over  have 
had  to  be  considerably  modified,  owing  to  the  necessity 
of  avoiding  a  deficit.  In  almost  every  instance  one  of 
the  considerations,  which  was  of  no  small  influence  in 
bringing  popular  sentiment  to  favor  municipal  owner- 
ship and  operation,  was  the  possibility  of  so  adjusting 
fares  as  to  subserve  social  as  well  as  financial  ends.  It 
was  constantly  pointed  out  that  with  municipal  opera- 
tion the  city  would  be  able  so  to  adjust  fares  as  to 
influence  migration  from  the  densely  populated  central 
wards  to  the  outlying  districts.  Unfortunately  the 
movement  for  municipal  operation  came  at  a  time  of 
economic  depression  in  Germany,  which  was  also  felt 
in  the  street-railway  traffic.  The  first  attempts  to  read- 
just fares  with  a  view  to  influencing  the  distribution  of 
population  were  followed  by  a  marked  decline  in  gross 
receipts.  These  two  circumstances  were  immediately 
associated  as  cause  and  effect,  and  led  most  of  the  cities 
to  return  to  the  system  of  fares  in  force  prior  to  the 
period  of  municipal  management. 

The  two  plans  with  which  the  German  cities  have 
experimented  are: 

First. — The  uniform  rate  under  which  the  same  fare 
is  charged,  no  matter  what  the  length  of  ride. 

Second. — The  zone  tariff,  i.  e.,  a  system  under  which 
the  rate  of  fare  increases  with  the  length  of  ride. 

Prior  to  the  period  of  municipal  operation  the  zone 


STREET    RAILWAYS    IN    GERMANY       313 

tariff  was  practically  universal.  This  system,  although 
sound  from  the  standpoint  of  the  financial  interests  of 
the  companies,  retarded  the  development  of  the  sub- 
urban districts.  In  the  agitation  for  municipal  owner- 
ship much  stress  was  laid  on  the  possibility  of  intro- 
ducing a  uniform  fare.  Of  all  the  cities  that  have 
tried  this  system,  Niirnberg  is  the  only  one  that  has  been 
able  to  retain  it.  Munich,  Diisseldorf,  Barmen,  and 
Konigsberg  have  tried  it,  but  felt  compelled,  for  finan- 
cial reasons,  to  revert  to  the  zone  system. 

The  experience  of  Munich  is  particularly  instructive. 
As  soon  as  the  lines  became  the  property  of  the  city  a 
radical  revision  of  the  system  of  fares  was  undertaken. 
A  uniform  rate  of  2|  cents  was  introduced  for  all  dis- 
tances within  the  limits  of  the  older  city — a  maximum 
distance  of  6  miles.  With  this  fare  the  right  to  one  free 
transfer  was  given.  Beyond  the  old  city  limits  the  fare 
was  5  cents  with  one  free  transfer.  We  have  already 
had  occasion  to  point  out  the  heavy  financial  obligations 
of  the  city  toward  the  street-railway  company  which, 
combined  with  the  fact  that  at  the  time  of  the  beginning 
of  city  ownership  the  community  was  in  the  midst  of  a 
period  of  financial  depression,  explain  the  deficit  of  the 
first  few  years.  The  municipal  authorities  felt  that  the 
uniform  fare  was  at  least  one  of  the  causes  of  the  unfa- 
vorable showing.  A  commission  was  appointed  which 
recommended  that  the  uniform  fare  be  retained  at  2£ 
cents  for  week  days,  but  that  on  Sunday  the  fare  be 


314     PROBLEMS    OF   CITY    GOVERNMENT 

increased  to  3f  cents.  It  was  furthermore  recom- 
mended that  commutation  tickets  be  adjusted  to  the 
zone  system.  Monthly  cards,  valid  for  a  distance  not 
exceeding  2  miles,  were  to  be  sold  for  $1.25,  while 
cards  permitting  of  a  3-mile  ride  were  to  cost  $1.87^. 
This  plan  was  put  into  operation  in  July,  1903,  but 
did  not  fulfill  the  expectations  of  increased  income. 
The  number  of  persons  using  the  cars  on  Sundays 
dropped  from  10,408,833  in  1902  to  6,933,450  in  1903. 
The  people  evidently  were  unwilling  to  pay  the  higher 
Sunday  rate.  The  question  was  again  referred  to  a  com- 
mission, and  in  1904  the  city  council  decided  to  abandon 
the  uniform  fare  and  to  substitute  therefor  a  zone  tariff. 
On  October  16,  1904,  the  new  system  went  into  effect. 
The  lines  were  divided  into  sections  called  "  units," 
each  f  of  a  mile  in  length.  The  rate  of  fare  for  each 
unit  was  fixed  at  1£  cents,  with  a  minimum  fare  of 
2|  cents.  The  fare  for  the  maximum  distance  was  fixed 
at  6|  cents.  Free  transfers  on  all  lines  are  issued.  In 
order  to  make  the  change  more  acceptable  to  the  work- 
ing classes,  it  was  provided  that  from  May  1st  to  Octo- 
ber 15th  the  fare  prior  to  7  A.M.,  no  matter  what  the  dis- 
tance, should  be  2£  cents,  and  from  October  16th  to 
April  30th  the  same  fare  should  obtain  prior  to  7.30 
A.M.  Monthly  commutation  tickets,  valid  for  a  speci- 
fied "  two-unit  "  ride  (1| miles),  are  sold  for  $1.50,  for 
a  "  four-unit  "  ride,  $3.  The  holders  of  these  cards 
may  travel  over  these  units  as  often  as  they  desire. 


STREET    RAILWAYS    IN    GERMANY       315 

Monthly  cards  good  for  the  entire  system  are  sold 
for  $3.75. 

During  the  first  nine  months  of  the  new  system  the 
financial  results  were  relatively  satisfactory.  The  gross 
receipts  during  this  period  increased  $16,156.60.  Al- 
though the  gross  receipts  were  larger,  the  total  number 
of  passengers  carried  declined  considerably.  As  com- 
pared with  the  nine  months  of  the  preceding  year  the 
decrease  was  nearly  half  a  million  (458,626). 

Frankfort  also  has  a  zone-tariff  system  similar  in  some 
respects  to  the  Munich  system.  The  gradation  of  fares 
is  as  follows : 

For  1}  miles  or  less 1\  cents 

Over  1£  and  less  than  2^V  miles 3|  cents 

Over  2-fa  and  less  than  3  miles 5    cents 

For  every  -j20-  of  a  mile  over  3  miles 1 J  cents 

Frankfort  has  done  more  than  any  other  German 
city  to  encourage  the  migration  of  population  to  the 
suburban  districts.  In  1904  a  special  system  of  fares 
was  introduced  for  apprentices,  workingmen,  and  arti- 
sans whose  income  is  less  than  $500  per  year.  Cards  for 
the  six  week  days  and  entitling  the  holder  to  the  use  of  a 
single  section  not  exceeding  If  miles  are  issued  for  7^ 
cents.  These  cards  must  be  used  before  7.30  A.M.;  at 
least  the  ride  must  be  begun  before  that  hour.  Weekly 
cards,  good  for  a  morning  ride  over  any  portion  of  the 
system  before  7.30  and  a  return  ride  in  the  evening, 


316      PROBLEMS    OF    CITY    GOVERNMENT 

are  issued  for  20  cents.  Monthly  commutation  cards 
for  unlimited  use  of  a  section  not  exceeding  1$  miles 
are  also  issued  to  workingmen  for  $1.25.  The  city  of 
Mannheim,  imbued  with  the  same  desire  to  favor  the 
housing  of  the  working  classes  in  the  outlying  districts, 
has  adopted  a  plan  which  has  proved  most  successful. 
Workingmen 's  1  tickets,  good  for  a  2-jV  miles '  ride,  are 
sold  for  1|  cents,  but  these  tickets  can  only  be  used 
from  the  suburban  sections  to  the  old  city  wall.  A  fur- 
ther ride  must  be  paid  for  at  the  regular  rate. 

In  Bielefeld  special  workingmen 's  cars  are  run  dur- 
ing the  early  morning  and  evening  hours.  The  fare  is 
1£  cents,  no  matter  how  long  the  ride  (maximum  ride 
5-^j-  miles).  In  Miihlheim  on  the  Rohr  workingmen 's 
monthly  commutation  tickets  are  issued  for  $1,  good  for 
the  morning  ride  to  and  the  evening  ride  from  place  of 
work.2 

Cologne  has  recently  introduced  a  new  zone-tariff 
system,  arranged  as  follows: 

Fare  for  1£  miles 2^  cents 

Fare  for  3f  miles 3J  cents 

Fare  for  5£  miles 5    cents 

Fare  over  5f  miles 6J  cents 

With  every  fare  exceeding  2^  cents  a  free  transfer  is 
issued.  Four  classes  of  tickets  are  sold : 

1  These  tickets  are  sold  only  to  persons  whose  income  does  not 
exceed  $300  per  year. 

2  Cf.  Lindemann,  op.  cit.,  p.  273. 


STREET    RAILWAYS    IN    GERMANY       317 

First. — Monthly  tickets  over  the  entire  system,  $3.25. 

Second. — Monthly  tickets  over  definite  sections,  of 
the  lines  are  arranged  as  follows:  The  entire  system 
is  divided  into  81  "  unit  sections."  The  charge  for 
monthly  tickets  over  three  contiguous  sections  is  $1.25 ; 
for  five  sections,  $1.75;  for  seven  sections,  $2. 

Third. — In  order  to  furnish  workingmen  with  cheap 
transportation  facilities,  tickets  good  for  use  before  7 
A.M.  in  summer  and  before  7.30  A.M.  in  winter  are  issued 
at  the  rate  of  six  for  7£  cents. 

Fourth. — Tickets  for  school  children  are  issued  for 
1£  cents,  good  for  any  distance. 

In  Cologne,  as  in  the  other  cities,  holders  of  commu- 
tation tickets  may  use  the  lines  as  often  as  they  choose. 
Niirnberg  and  Darmstadt  are  the  only  large  cities  of  any 
size  that  still  retain  the  uniform  rate  in  their  municipal 
railway  system.  The  fare  is  2£  cents.  In  the  issuance 
of  commutation  tickets  Niirnberg  has  departed  from  the 
uniform  rate.  Monthly  tickets  for  two-mile  sections  are 
sold  for  $1.50 ;  monthly  tickets  for  the  entire  system  cost 
$2.50.  In  Darmstadt  the  uniform  fare  of  2£  cents  is 
only  departed  from  on  one  line,  on  which  the  fare  is  3| 
cents. 

The  experience  of  some  of  the  other  cities  in  which 
the  street  railways  are  under  municipal  management  is 
worthy  of  attention.  Diisseldorf  took  over  the  street 
railways  and  immediately  introduced  the  uniform  fare 
of  2£  cents  with  right  to  one  free  transfer,  and  3f  cents 


318      PROBLEMS    OF    CITY    GOVERNMENT 

with  right  to  two  transfers.  Monthly  commutation 
tickets  for  the  entire  system  were  sold  for  $1.50.  A 
special  rate  of  $1  was  made  for  school  children.  The 
first  year  of  municipal  operation  showed  a  deficit  of 
$33,963.  After  careful  consideration  the  city  authorities 
decided  to  abandon  the  uniform  rate  and  adopted  a  zone 
tariff.  This  seemed  to  have  no  immediate  effect,  as  the 
real  cause  of  the  deficit  was  the  general  economic  depres- 
sion. The  attempt  was  then  made  to  remedy  the  finan- 
cial situation  by  diminishing  the  size  of  the  zone  unit. 
The  increase  in  price,  combined  with  the  improvement 
in  the  industrial  situation  of  the  community,  placed  the 
system  on  a  paying  basis. 

In  Barmen  the  uniform  2^-cent  fare  with  free  trans- 
fer was  also  introduced  immediately  after  the  municipal- 
ization  of  the  street  railways.  Monthly  commutation 
cards  good  for  all  portions  of  the  system  were  issued  at 
$1.25.  The  maximum  length  of  ride  without  transfer 
was  4£  miles.  Under  this  system  the  street-railway  ac- 
counts showed  a  chronic  deficit  amounting  to  $220  in 
1897,  $9,849  in  1898,  $5,312  in  1899,  $3,729  in  1900,  and 
$4,026  in  1901.  In  December,  1903,  this  system  was  re- 
placed by  a  zone  tariff  under  which  the  lines  were  divided 
into  five  zones  of  2-j^  miles  each.  The  rate  for  each 
zone  was  fixed  at  1^  cents,  with  a  maximum  fare  of  2£ 
cents. 

In  Konigsberg  the  uniform  fare  system  was  in  force 
during  the  first  years  of  municipal  management.  In 


STREET    RAILWAYS    IN    GERMANY       319 

April,  1903,  the  city  authorities,  in  order  to  increase 
the  receipts,  introduced  a  combination  of  the  uniform 
rate  and  zone  tariff.1  Within  the  limits  of  the  city  the 
uniform  1\  cent  fare  is  retained;  beyond  the  city  limits 
3 1  cents  is  charged. 

CHARACTER  OP  SERVICE  UNDER  MUNICIPAL,  MANAGEMENT 

It  requires  but  very  brief  observation  of  conditions 
in  German  cities  to  be  forced  to  the  conclusion  that 
' '  rapid  transit  ' '  in  the  sense  in  which  that  term  is  used 
in  American  cities  is  unknown  in  Germany.  Its  absence 
has  added  greatly  to  the  burdens  of  the  municipal  au- 
thorities, especially  in  increasing  the  difficulties  of  the 
housing  and  other  sanitary  problems.  The  failure  to 
develop  a  system  of  rapid  transit  is  not  traceable  to  the 
shortcomings  of  municipal  management.  In  fact,  under 
municipal  management  conditions  have  been  greatly 
improved. 

The  marked  difference  between  American  and  con- 
tinental cities  in  the  efficiency  of  the  service  is  traceable 
directly  to  the  conditions  of  business  life.  Until  com- 
paratively recent  years  there  was  no  definite  line  of 
demarcation  between  the  business  and  residence  sections 
of  German  cities.  This  condition  is  directly  traceable 
to  the  industrial  characteristics  of  the  mediaeval  city  in 
which  the  artisan's  workshop  and  residence  were  in  the 

1  Cf.  Lindemann,  vol.  ii,  p.  266. 


320      PROBLEMS    OF    CITY    GOVERNMENT 

same  building.  Another  factor  of  considerable  impor- 
tance is  the  relatively  small  area  of  the  German  as  com- 
pared with  the  American  cities.  The  incorporation  of 
suburban  districts  which  has  taken  place  within  the  last 
ten  years  has  greatly  diminished  the  contrast,  but  the 
standards  of  traffic  have  not  been  made  to  conform  to 
the  changed  conditions.  The  system  of  urban  transpor- 
tation in  Germany  fails  to  meet  the  requirements  of  the 
great  industrial  centers  that  have  developed  in  recent 
years. 

In  most  of  the  German  cities  the  day  cars  are  run 
at  intervals  of  from  four  to  eight  minutes.  On  some 
of  the  most  important  lines  the  interval  is  reduced  to 
three  minutes,  but  more  frequent  traffic  is  unknown. 
After  midnight  the  service  is  usually  suspended  until 
5  A.M.  The  speed  of  the  cars  is  from  one  third  to  one 
half  less  than  in  the  United  States. 

It  is  true  that  greater  care  is  taken  of  the  comfort 
of  the  passengers,  the  number  of  persons  permitted  in 
each  car  being  carefully  designated.  Nevertheless,  the 
advantage  of  this  attention  to  detail  is  relatively  unim- 
portant when  compared  with  the  disadvantages  incident 
to  the  absence  of  a  well-developed  system  of  rapid  com- 
munication which,  by  favoring  a  more  equable  distri- 
bution of  population,  would  considerably  simplify  the 
most  pressing  social  problems  of  the  cities  of  Germany. 


STREET    RAILWAYS    IN    GERMANY       321 

LABOR  CONDITIONS  UNDER  MUNICIPAL  MANAGEMENT 

One  of  the  most  notable  achievements  of  municipal 
operation  in  Germany  has  been  the  betterment  of  labor 
conditions.  The  German  cities  undertook  without  delay 
to  readjust  the  hours  of  labor  so  as  to  bring  them  within 
the  ten-hour  limit,  and  so  to  arrange  the  schedules  that 
this  ten-hour  service  should  be  as  continuous  as  possible. 
This  constituted  a  great  improvement  over  the  older 
schedules,  under  which  the  employees  worked  three  and 
four  hours  at  a  time,  and  were  thus  compelled  to  be  on 
duty  considerably  beyond  the  ten-hour  period.  Com- 
pared with  the  United  States  the  wages  seem  surpris- 
ingly low.  In  the  larger  cities  of  Germany  the  average 
wage  of  motor  men  is  80  cents  per  day;  of  conductors, 
75  cents  per  day.  In  Cologne  conductors  receive  from 
$22.50  to  $30  per  month;  motor  men  from  $29.50  to 
$37.50,  depending  on  the  length  of  service.  In  case  of 
disability  arising  from  any  cause,  an  annuity  of  $175 
is  assured  during  the  period  of  such  disability.  Mu- 
nich pays  the  motor  men  and  conductors  75  cents  per 
day,  which  is  gradually  increased  until,  after  five  years 
of  service,  the  maximum  rate  of  $1.25  per  day  is  reached. 
This  represents  the  wage  condition  in  most  of  the  cities 
in  which  the  street  railways  are  under  municipal  man- 
agement. The  hours  of  labor  in  all  the  cities  are  ad- 
justed on  a  ten-hour  scale. 

In   judging   this   comparatively   low   wage   scale,   it 


322      PROBLEMS    OF    CITY    GOVERNMENT 

must  be  borne  in  mind  that  the  "  fee  "  system  still 
prevails  in  most  of  the  German  cities.  Many  of  the 
passengers  in  paying  their  fare  give  to  the  conductor 
5  pfennigs  (1|  cents).  The  motor  man  is  entitled  to  a 
certain  percentage  of  the  fees  received  by  the  conductor 
— usually  about  35  per  cent.  In  this  way  motor  men 
and  conductors  receive  from  30  to  40  cents  per  day  in 
addition  to  their  regular  wage. 

Even  with  these  additions  the  wage  seems  low  com- 
pared with  American  conditions.  The  results  of  a  special 
inquiry  undertaken  by  the  Census  Bureau  in  1902  show 
that  14  per  cent  of  the  conductors  on  electric  surface 
railways  in  cities  of  over  100,000  receive  from  $1.75  to 
$1.99  per  day,  62.1  per  cent  receive  from  $2  to  $2.24, 
and  13.6  per  cent  receive  from  $2.25  to  $2.49.  Of  the 
motor  men,  12.9  per  cent  receive  $1.75  to  $1.99 ;  59.8  per 
cent  receive  from  $2  to  $2.24,  and  19.8  per  cent  receive 
from  $2.25  to  $2.49.  Although  in  Germany  the  wages 
of  street-railway  employees  under  municipal  and  private 
management  are  practically  the  same,  there  is  consider- 
able difference  in  the  treatment  of  employees  in  case  of 
sickness,  disability,  or  death.  In  all  the  German  cities 
special  funds  have  been  established,  toward  which  the 
city  treasury  contributes  each  year  a  sum  equal  to  a 
certain  percentage  of  the  employees'  salaries.  Cologne 
and  two  or  three  of  the  other  cities  have  even  undertaken 
to  build  dwellings  for  their  employees. 


STREET    RAILWAYS    IN   GERMANY      323 

COMPARISON  AND  CONCLUSION 

Any  attempt  to  determine  the  success  or  failure  of 
municipal  management  of  street  railways  in  Germany 
must  be  based  upon  a  comparison  of  public  with  pri- 
vate management.  A  careful  review  of  the  experience 
of  German  cities  will  show  that  private  control  has  been 
singularly  unprogressive.  This  has  been  due,  in  part  at 
least,  to  the  onerous  conditions  under  which  the  original 
franchise  grants  were  made.  The  companies  did  not  feel 
justified  in  incurring  the  risks  involved  in  making  im- 
provements on  a  large  scale  or  in  extending  the  service 
into  the  outlying  districts  of  the  city.  Impressed  with 
the  lessons  of  this  experience  we  find  the  more  recent 
franchise  grants  specifying  minutely  the  streets  over 
which  the  service  must  be  extended. 

The  relation  between  the  city  and  the  street-railway 
corporations  in  Germany  seems  to  be  exactly  the  re- 
verse of  that  in  the  United  States.  Here  the  companies 
are  constantly  seeking  the  right  to  extend  their  lines 
into  new  districts,  whereas  in  Germany  the  municipal 
authorities  are  engaged  in  a  constant  struggle  to  secure 
from  the  companies  an  extension  of  the  service.  This 
difference  in  the  attitude  of  the  companies  toward  the 
extension  of  the  service  is  due  in  part  to  the  broader 
spirit  of  enterprise  of  American  corporations,  but  the 
main  reason  is  to  be  found  in  the  fact  that  the  Ger- 
man companies  are  aware  that  every  new  grant  from 


324      PROBLEMS    OF    CITY    GOVERNMENT 

the  city  is  accompanied  by  a  demand  for  so  large  a 
percentage  of  gross  receipts  that  net  profits  are  consid- 
erably diminished.  It  is  not  surprising,  therefore,  that 
the  German  companies  have  shown  a  conservatism  which 
is  usually  interpreted  as  lack  of  enterprise  and  inability 
to  discount  the  future. 

We  have  seen  that  the  movement  toward  municipal- 
ization  was  largely  determined  by  the  antagonism  be- 
tween the  cities  and  the  street-railway  companies,  grow- 
ing out  of  the  desire  of  the  city  to  secure  a  more  rapid 
extension  of  the  service.  If,  at  the  time  they  applied 
for  the  right  to  substitute  electricity  for  horse  power, 
the  companies  had  more  fully  appreciated  the  value  of 
the  privilege,  it  is  likely  that  they  would  have  been 
more  willing  to  accede  to  the  wishes  of  the  city  author- 
ities. 

The  process  of  municipalization  was  greatly  facili- 
tated by  the  fact  that  under  the  German  law  the  ac- 
counts of  public-service  corporations  are  subjected  to 
careful  public  control.  The  amount  expended  by  each 


COMPANY 

Total 
capitaliza- 
tion 

Length  of 
line,  includ- 
ing double- 
track  rail- 
ways 

Capitalization 
per  mile 
of  road 

Cologne  Street  Railway 
Company  

$1,368625 

50.5 

$27,101.48 

Niirnberg  Street  Railway 
Company  

1  ,570,000 

29.0 

54,138.28 

Munich  Street  Railway 
Company  

1  ,500,000 

63.0 

23,809.52 

STREET    RAILWAYS    IN    GERMANY       325 

company  for  the  construction  and  equipment  of  the 
lines  is  easily  ascertainable.  Every  dollar  of  capital 
represents  actual  investment.  The  total  capitalization 
of  the  companies  whose  lines  have  been  recently  munic- 
ipalized is  as  given  in  the  foregoing  table. 

The  net  capital  liability  per  mile  of  track  of  the 
electric  surface  railways  of  the  United  States  is  $92,114. 
In  the  cities  with  a  population  of  500,000  and  over, 
the  net  capitalization  per  mile  of  track  reaches  the 
enormous  sum  of  $182,775.  In  New  York  City  the 
capitalization  per  mile  of  track  is  $259,542;  in  Chi- 
cago, $109,537 ;  in  Philadelphia,  $165,085 ;  in  St.  Louis, 
$198,647 ;  in  Boston,  $97,353 ;  in  Washington,  $186,416 ; 
in  Pittsburg,  $185,170,  and  in  San  Francisco,  $140,985. 

The  influence  of  this  wide  difference  in  capitaliza- 
tion on  the  expense  account  of  street-railway  lines 
under  American  and  European  conditions  is  readily 
apparent.  The  percentage  of  total  income  expended 
by  American  companies  for  interest  and  liquidation 
charges,  and  for  the  payment  of  guaranteed  dividends 
to  subsidiary  companies,  is  considerably  larger  than 
that  of  the  German  companies.  The  table  on  the  fol- 
lowing page  presents  some  data  relating  to  Frankfort, 
Cologne,  and  Niirnberg.  Accurate  figures  for  the  larger 
American  companies  are  not  obtainable. 

Any  attempt  to  review  the  results  of  municipal  own- 
ership would  be  incomplete  without  some  reference  to 
the  effect  on  the  civic  life  of  the  communities  under 


326      PROBLEMS    OF    CITY   GOVERNMENT 


CITY 

Interest 
and  liquidation 
charges 

Per- 
centage of 
total  ex- 
penditure 

Frankfort  

$112,066.04 

10.6 

Cologne 

204  000.00 

17.0 

Niirnberg  

138,063.00 

28.7 

consideration.  The  introduction  of  electricity  as  a 
motive  power  greatly  increased  the  possibilities  of  profit, 
and  led  the  companies  to  exert  the  strongest  possible 
pressure  to  secure  a  renewal  of  their  franchises,  com- 
bined with  the  right  to  use  electrical  power.  In  the 
struggle  to  secure  these  new  rights  one  can  detect  the 
first  traces  of  the  insidious  forms  of  corruption  which 
have  done  so  much  to  undermine  the  civic  life  of  Amer- 
ican communities.  In  a  number  of  instances  members 
of  the  town  council  were  retained  as  attorneys  for  street- 
railway  companies,  and  in  one  case  an  influential  alder- 
man of  one  of  the  larger  cities  was  made  a  director  of 
a  street-railway  company  at  a  time  when  the  company 
was  seeking  important  privileges. 

On  the  other  hand,  in  those  cities  that  have  munic- 
ipalized their  street-railway  systems  there  is  no  indica- 
tion of  corruption  traceable  to  the  large  increase  in  the 
number  of  city  employees.  The  civil-service  system  is 
so  highly  organized  that  the  danger  of  political  influ- 
ence is  reduced  to  a  minimum. 

Viewing  the  situation  broadly,  it  may  fairly  be  said 


that  the  municipalization  of  the  street  railways  has 
protected  the  German  cities  from  the  dangers  involved 
in  the  desire  of  private  corporations  to  secure  control 
of  local  administration  for  the  purpose  of  securing  spe- 
cial privileges.  In  1890  but  few  of  the  companies  were 
declaring  large  dividends.  In  fact,  the  large  return 
which  they  were  compelled  to  make  for  the  franchises 
under  which  they  were  operating  made  it  necessary  to 
exercise  the  greatest  economy  in  order  to  make  a  fair 
profit  on  the  capital  actually  invested.  The  new  fran- 
chises, in  offering  to  the  companies  far  larger  possibili- 
ties of  profit,  correspondingly  increased  the  temptation 
to  secure  control  of  local  policy.  It  is  too  early  to 
predict  whether  the  cities  in  which  the  street  rail- 
ways are  still  in  the  hands  of  private  companies  will 
be  able  to  withstand  the  temptations  which  now  beset 
them. 

Are  these  lessons  of  German  experience  of  any  real 
value  to  our  American  municipalities?  The  answer  to 
this  question  is  a  matter  of  far  more  than  theoretical 
importance.  Partly  because  of  the  feeling  of  irritation 
aroused  by  the  corrupting  influence  of  public-service 
corporations  on  the  civic  life  of  American  communi- 
ties, but  mainly  owing  to  a  general  awakening  to  the 
possibilities  of  improved  service  in  urban  transportation 
and  in  gas-  and  electric-light  services,  the  public  mind 
is  anxiously  turning  to  municipal  ownership  and  opera- 
tion as  a  possible  solution. 


In  any  comparisons  with  German  conditions,  it  is 
important  to  bear  in  mind  that  the  American  public 
demands  more  rapid  service  than  the  German.  The 
present  unrest  of  American  public  opinion  is  due  to  the 
fact  that  the  requirements  as  to  the  standard  of  service 
are  being  raised  with  such  rapidity  that  the  overcapi- 
talized corporations  are  unable  to  maintain  the  pace 
to  which  they  have  been  forced  during  recent  years. 

Although  the  discussions  in  favor  of  municipal  oper- 
ation are  being  grouped  about  the  possibility  of  large 
financial  returns  to  the  city  treasury,  it  is  not  likely 
that  this  argument  will  stir  the  American  people  to  any 
drastic  measures.  To  secure  united  action,  appeal  must 
be  made  to  the  desire  for  improved  service.  Whatever 
may  be  said  against  American  street-railway  corpora- 
tions, no  one  will  deny  that  they  have  given  far  better 
service  than  the  German  companies.  It  is  true  that 
they  have  been  given  greater  freedom  in  the  develop- 
ment of  the  service,  and  also  that  the  public  demands, 
especially  as  regards  the  rapidity  of  the  service,  have 
been  considerably  higher  than  in  Germany.  In  any 
case,  however,  municipal  operation  in  the  United  States 
would  have  to  bear  the  test  of  a  higher  standard  of 
service  than  in  Germany.  Any  attempt  to  apply  the 
lessons  of  German  experience  which  does  not  keep  this 
difference  in  mind  is  certain  to  be  misleading  rather  than 
helpful. 


STREET    RAILWAYS    IN   GERMANY       329 

REFERENCES 

Annual  Reports  of  Berlin,  Frankfort,  Cologne,  and  Niirnberg. 
LINDEMANN,  H.     "  Arbciterpolitik  und  Wirtschaftspflege  in  der 

deutschen  Staedteverwaltung."    Stuttgart,  1904. 
SHAW,  A.     "Municipal  Government  in  Continental  Europe." 

New  York:  Century,  1895. 


CHAPTER   XIV 

MUNICIPAL    OWNERSHIP    AND    OPERATION:    THE    VALUE    OP 
FOREIGN   EXPERIENCE 

IN  all  matters  affecting  municipal  organization  we 
have  now  reached  a  point  at  which  it  is  possible  to 
secure  a  calm,  dispassionate  discussion  of  the  elements 
entering  into  the  present  situation,  but  the  moment  we 
enter  upon  questions  connected  with  municipal  activ- 
ities, we  seem  unable  to  eliminate  traditional  prejudices. 
Whenever  the  experience  of  foreign  cities  with  munic- 
ipal ownership  and  operation  is  discussed,  the  only 
question  in  which  we  seem  to  be  interested  is  whether 
this  experience  proves  or  disproves  the  desirability  of 
this  policy  for  American  cities.  We  are  not  satisfied 
unless  we  can  find  some  general  principle  applicable  to 
all  conditions  and  in  all  circumstances. 

It  is  clear  that  we  cannot  hope  to  arrive  at  any 
sound  conclusion  in  this  matter  unless  we  are  willing 
to  apply  the  same  methods  that  have  gradually  worked 
their  way  into  the  discussion  of  questions  of  municipal 
organization.  We  must  be  prepared  to  accept  as  final 
that  there  is  no  one  general  policy  applicable  to  all  the 
cities  of  the  United  States,  and  that  the  most  we  can  do 

330 


VALUE    OF   FOREIGN   EXPERIENCE      331 

is  to  make  a  dispassionate  analysis  of  the  different 
elements  that  must  enter  into  the  final  judgment  on 
any  local  situation. 

The  experience  of  foreign  cities  is  certainly  one  of 
the  elements  to  which  consideration  should  be  given, 
but  the  way  in  which  foreign  experience  is  now  being 
used  bids  fair  so  to  confuse  the  public  mind  that,  unless 
we  are  willing  to  deal  with  it  in  an  entirely  different 
spirit,  its  use  is  likely  to  do  more  harm  than  good.  The 
advocates  as  well  as  the  opponents  of  municipal  owner- 
ship are  constantly  citing  European  conditions,  and  each 
side  is  able  to  array  a  group  of  facts  to  support  its 
position.1 

The  advocates  of  municipal  ownership  point  with 
enthusiasm  to  the  reduction  in  the  burden  of  taxation, 
the  lowering  of  charges  to  consumers,  the  greater  econ- 
omy of  operation  through  lower  interest  rates,  the  im- 
proved condition  of  employees,  and  the  broader  social 
policy  directly  traceable  to  the  substitution  of  public 

1  The  morning  this  chapter  was  begun  I  received  two  publications 
which  illustrate  the  difficulties  involved  in  the  use  of  foreign 
material.  A  work  entitled  "Municipal  Ownership  in  Great  Britain," 
by  Prof.  Hugo  Richard  Meyer  (340  pages,  Macmillan  Company,  1906) 
is  devoted  to  proving  the  thesis  that  municipal  ownership  and 
operation  in  Great  Britain  has  been  a  failure  from  almost  every  point 
of  view.  On  the  other  hand,  a  monographic  study  by  Frederic  C. 
Howe,  entitled  "Municipal  Ownership  in  Great  Britain" — which  is 
the  result  of  a  special  investigation  conducted  under  the  auspices  of 
the  United  States  Bureau  of  Labor — is  replete  with  evidence  pointing 
to  exactly  the  opposite  conclusion.  This  monograph  is  published  in 
the  Bulletin  of  the  Bureau  of  Labor  for  January,  1906. 


332      PROBLEMS    OF    CITY    GOVERNMENT 

for  private  ownership  and  operation.  They  emphasize 
the  impossibility  of  securing  from  private  companies 
the  improvements  that  were  carried  out  as  soon  as  the 
cities  took  over  these  quasi-public  services,  and  they 
point  with  much  satisfaction  to  the  better  coordination 
of  municipal  policy  directly  traceable  to  this  extension 
of  functions  and  the  record  of  achievement  in  improv- 
ing the  social  well-being  of  the  population. 

On  the  other  hand,  the  opponents  of  municipal  own- 
ership point  to  the  terrific  burden  of  local  indebtedness 
under  which  the  cities  which  have  adopted  this  policy 
are  now  staggering.  They  endeavor  to  prove  that  in- 
stead of  relieving  the  burden  of  taxation,  the  actual 
effect  has  been  to  increase  it ;  they  maintain  that,  owing 
to  a  faulty  system  of  accounting,  the  profits  reported  are 
fictitious-  rather  than  real,  and  finally  they  draw  a  lurid 
picture  of  the  extravagant  increase  in  municipal  em- 
ployees since  the  inauguration  of  this  policy.  No  won- 
der that  the  average  citizen  turns  wearily  from  this 
mass  of  conflicting  testimony,  convinced  that  no  guid- 
ance can  be  secured  from  these  real  or  supposed  facts, 
and  resolved  to  settle  the  question  without  reference  to 
foreign  conditions. 

It  seems  unfortunate  that  the  self-interest  and  preju- 
dice which  have  obscured  the  real  issues  involved  in  this 
great  question  should  prevent  us  from  availing  ourselves 
of  the  mass  of  valuable  experience  that  both  British 
and  Continental  cities  have  accumulated  during  the  last 


VALUE    OF    FOREIGN    EXPERIENCE      333 

twenty-five  years.  To  make  this  experience  helpful, 
however,  it  must  be  used  with  the  greatest  care  and  dis- 
crimination. The  best  introduction  to  a  proper  esti- 
umtc  of  its  value  is  an  analysis  of  the  causes  that 
have  led  to  the  present  movement  for  municipal  owner- 
ship in  European  countries.  It  is  both  an  interesting 
and  a  significant  fact  that  the  same  combination  of 
causes  is  everywhere  apparent.  The  movement  for  the 
municipal  ownership  of  gas  and  electric  lighting,  but 
particularly  of  street  railways,  is  directly  traceable  to 
the  failure  of  private  companies  to  furnish  the  kind 
of  service  which  the  inhabitants  of  the  cities  demanded, 
and  had  the  right  to  expect.  Particularly  in  Germany, 
the  history  of  the  relation  between  municipalities  and 
public-service  corporations  is  one  long  story  of  crimina- 
tion and  recrimination. 

The  indictment  against  the  public-service  corpora- 
tions was  none  too  strong,  and  fully  justified  the  step 
taken  by  the  leading  municipalities  in  these  two  coun- 
tries. In  order,  however,  properly  to  interpret  the  situ- 
ation, we  must  know  something  of  the  conditions  under 
which  these  private  companies  were  operating.  The 
original  franchise  grants  were  made  for  relatively  short 
terms,  ranging  from  twenty-five  to  forty  years,  and  were 
usually  accompanied  by  the  requirement  for  payment 
into  the  city  treasury  of  from  three  to  eight  per  cent 
of  the  gross  receipts.  The  relatively  large  financial 
return,  combined  with  the  comparatively  short  fran- 


334     PROBLEMS    OF    CITY   GOVERNMENT 

chise  period,  discouraged  the  companies  from  taking 
any  large  risks,  especially  in  extending  the  service  into 
new  and  relatively  sparsely  settled  sections  of  the  city. 
This  natural  conservatism  has  been  interpreted  as  an 
indication  of  the  inability  of  the  companies  to  meet  the 
requirements  of  the  local  service. 

The  faith  in  private  ownership  was  further  weak- 
ened by  the  reluctance  of  the  companies  to  make  the 
change  from  horse  to  electrical  power.  In  both  Great 
Britain  and  Germany,  but  particularly  in  Germany,  the 
introduction  of  electrical  traction  came  toward  the  close 
of  existing  franchise  grants,  and  it  is  not  surprising 
that  the  companies  refused  to  make  the  large  capital 
investment  which  the  change  required  unless  they  were 
assured  either  of  an  extension  of  the  franchise  period 
or  of  adequate  reimbursement  for  the  capital  outlay. 
It  is,  therefore,  manifestly  unfair  to  ascribe  all  the 
shortcomings  of  corporate  service  to  defects  inherent  in 
corporate  management.  In  fact,  the  most  important  are 
directly  traceable  to  the  stringent  conditions  under 
which  franchises  were  held,  and  the  unwillingness  of 
the  municipalities  to  make  further  concessions  to  the 
companies.  This  experience  contains  a  valuable  lesson 
for  American  municipalities,  and  furnishes  an  indirect 
and  somewhat  unexpected  argument  for  the  advocates 
of  municipal  ownership.  The  universal  experience  of 
European  countries  has  been  that  as  the  terms  of  fran- 
chise grants  are  made  shorter,  and  the  financial  pay- 


VALUE    OF   FOREIGN   EXPERIENCE      335 

merits  for  such  grants  increase,  the  service  performed 
by  private  corporations  deteriorates,  while  the  initia- 
tive and  enterprise  which  lead  them  to  experiment  with 
new  methods  and  devices  are  stunted,  if  not  totally 
destroyed.  The  willingness  of  American  corporations 
to  take  great  risks,  and  even  to  sacrifice  considerable 
invested  capital  for  the  purpose  of  ultimate  economy, 
is  due  very  largely  to  the  fact  that  until  recent  years 
they  have  been  permitted  to  plan  for  a  service  upon 
which  no  time  limit  was  placed. 

If  the  reform  in  the  method  of  franchise  grants 
becomes  general,  as  it  bids  fair  to  do,  we  are  likely  to 
experience  a  marked  change  in  the  policy  of  the  public- 
service  corporations.  The  short-term  franchise  to  the 
highest  bidder  assures  to  the  city  an  adequate  money 
return  for  the  privilege  granted,  but  tends  to  discourage 
the  companies  from  incurring  large  risks  in  the  exten- 
sion of  the  service.  It  is  not  unlikely  that  municipal 
ownership  will  come  all  the  more  quickly  because  of 
the  difficulties  and  antagonisms  that  are  certain  to  grow 
out  of  this  more  careful  safeguarding  of  public  fran- 
chises. From  these  facts  several  lessons  may  be  drawn: 

First. — In  the  adjustment  of  the  relation  between 
public-service  corporations  and  municipalities  there  is 
constant  danger  of  overemphasizing  financial  considera- 
tions to  the  detriment  of  the  larger  social  ends  which 
all  these  services  should  perform.  This  does  not  mean 
a  reckless  granting  of  franchises,  but  rather  a  clearer 


336   PROBLEMS  OF  CITY  GOVERNMENT 

perception  of  the  fact  that  money  payments  are  not 
the  only,  and  in  fact  not  the  most  important  form  in 
which  a  community  may  receive  an  adequate  return 
for  franchise  grants.  European  cities  have  overem- 
phasized the  financial  return,  and  the  same  danger 
confronts  American  municipalities.  It  is  true  that  our 
American  communities  have  received  a  totally  inade- 
quate money,  return  for  the  valuable  privileges  which 
they  have  granted,  but  it  is  equally  true  that  the  inhab- 
itants of  our  cities  have  profited  to  no  small  degree  by 
the  spirit  of  enterprise  and  the  readiness  to  make  sweep- 
ing improvements  in  equipment  which  have  character- 
ized the  policy  of  the  larger  public-service  corporations 
in  the  United  States. 

Second. — Inasmuch  as  most  American  cities  are  now 
committed  to  a  policy  of  short-term  franchises,  the  ex- 
perience of  every  European  city  teaches  the  necessity 
of  inserting  in  the  grant  a  reserve  power  on  the  part 
of  the  municipality  to  require  the  companies  to  make 
certain  definite  extensions  of  service  each  year,  or  at 
least  to  fix  the  minimum  requirements  for  such  exten- 
sions. 

Third. — Even  with  all  these  precautions,  it  is  more 
than  likely  that  American  cities  will  repeat  the  ex- 
perience of  European  communities.  The  antagonism 
between  the  local  authorities  and  the  public-service  cor- 
porations, arising  out  of  the  interpretation  of  the  re- 
served power  of  the  municipality,  will  develop  to  such 


a  point  as  to  make  municipal  ownership  the  only  possi- 
ble solution.  The  numerous  controversies  between  the 
city  of  New  York  and  the  Interborough-Metropolitan 
Company  illustrate  this  danger. 

Another  series  of  lessons  to  be  drawn  from  Euro- 
pean experience  relates  more  particularly  to  the  effect 
of  municipal  ownership  on  local  finance.  Much  has 
been  said  and  written  on  this  question,  and  the  testi- 
mony presented  by  the  advocates  and  opponents  of 
municipal  ownership  is  of  the  most  conflicting  charac- 
ter. The  opponents  of  this  policy  have  drawn  a  depress- 
ing picture  of  the  extraordinary  increase  in  municipal 
indebtedness  and  the  inordinate  increase  in  taxation  in 
those  countries  in  which  municipal  ownership  has  been 
tried.  As  a  matter  of  fact,  in  all  the  European  coun- 
tries in  which  municipal  ownership  has  received  general 
recognition,  particularly  in  Germany  and  Great  Britain, 
the  increase  in  municipal  indebtedness  caused  by  the 
adoption  of  this  policy  does  not  represent  a  real  burden 
on  the  community,  as  both  the  interest  and  the  sinking- 
fund  charges  of  this  portion  of  the  debt  are  defrayed, 
with  very  few  exceptions,  from  the  receipts  of  the  vari- 
ous services.  The  increase  in  taxation  is  traceable  to 
public  improvements,  such  as  the  betterment  of  school 
facilities,  repaving  of  highways,  improved  organization 
of  police  service,  etc.,  from  which  no  direct  money  re- 
turn is  secured. 

The  failure  to  distinguish  between  the  two  types  of 


338     PROBLEMS    OF    CITY   GOVERNMENT 

municipal  services — the  financially  productive  and  the 
financially  unproductive — has  befogged  the  real  issue, 
and  has  in  some  cases  prevented  the  consideration  of 
the  question  of  municipal  ownership  on  its  merits.  The 
experience  of  the  European  countries  points  to  the  ne- 
cessity of  distinguishing  between  that  portion  of  the 
city's  indebtedness  which  represents  investments  in  re- 
productive enterprises  and  that  portion  which  is  used 
for  financially  unproductive  services.  The  constitutional 
limitations  on  local  indebtedness,  because  of  the  fail- 
ure to  make  this  distinction,  are  hampering  the  normal 
growth  of  American  municipalities.  They  served  their 
purpose  in  checking  that  spirit  of  speculation  and  wild- 
cat enterprise  which  for  a  time  threatened  the  stability 
of  our  system  of  local  finance.  This  danger  is  now 
happily  past,  but  the  perpetuation  of  the  old  restrictions 
is  a  real  obstacle  to  progress  and  places  our  municipali- 
ties at  the  mercy  of  the  public-service  corporations.  It 
will  be  difficult  to  secure  the  repeal  of  these  constitu- 
tional limitations,  but  it  is  imperative,  if  this  question  of 
municipal  ownership  is  to  be  dealt  with  on  its  merits, 
that  a  distinction  be  made  between  productive  and  un- 
productive enterprises,  and  that  the  limitations  on  that 
portion  of  indebtedness  incurred  for  reproductive  enter- 
prises be  removed.  This  plan  was  proposed  by  the 
Committee  on  Municipal  Program  of  the  National  Mu- 
nicipal League,  and  the  wisdom  of  this  proposal  is  mak- 
ing itself  more  apparent  each  day.  In  modified  form 


VALUE    OF    FOREIGN   EXPERIENCE      339 

it  has  been  inserted  into  the  State  Constitution  of  New 
York. 

The  most  serious  objection  advanced  against  the 
policy  of  municipal  ownership  and  operation  in  the 
United  States  is  the  lack  of  an  administrative  organiza- 
tion, and  particularly  of  a  civil-service  system  adequate 
to  bear  the  additional  burden  which  such  extension  of 
function  would  involve.  The  picture  of  extravagance, 
corruption,  and  misrule  which  is  held  up  to  us  as  the 
inevitable  accompaniment  of  the  extension  of  municipal 
powers  has  done  more  than  anything  else  to  check  the 
spread  of  sentiment  in  favor  of  municipal  ownership. 
On  this  point  the  experience  of  the  municipalities  of 
Great  Britain  and  Germany  is  particularly  suggestive 
and  valuable. 

The  first  thing  that  is  impressed  upon  every  stu- 
dent of  foreign  municipal  institutions  is  the  small  num- 
ber of  elective  administrative  officers  and  the  relative 
permanence  of  tenure  of  the  heads  of  executive  depart- 
ments. In  the  United  States  we  have  proceeded  on 
the  assumption  that  popular  government  means  short 
term  of  office  and,  to  a  certain  extent,  rotation  in  office. 
We  are  but  beginning  to  appreciate  the  fact  that  there 
are  certain  portions  of  our  political  system  in  which 
the  plan  of  popular  election  and  short  tenure  defeats 
rather  than  promotes  the  real  intent  and  purpose  of 
popular  government.  Considerable  sections  of  the  coun- 
try have  already  become  convinced  of  this  fact,  so  far 


340     PROBLEMS    OF    CITY    GOVERNMENT 

as  the  election  of  judges  is  concerned,  and  in  our 
largest  cities  the  application  of  the  elective  principle 
to  heads  of  administrative  departments  is  being  grad- 
ually restricted,  although  in  no  case  have  we  as  yet 
reached  the  point  at  which  the  management  of  a  great 
city  department  is  looked  upon  as  a  career  to  which  a 
man  may  give  the  best  years  of  his  life  with  the  assurance 
of  permanent  employment.  Under  our  present  system 
the  term  of  office  is  so  short  that  the  head  of  a  municipal 
department  hesitates  to  propose  large  plans  for  improve- 
ment, because  of  the  relative  certainty  that  he  will  be 
unable  to  carry  these  plans  to  successful  conclusion. 

The  American  people  must,  sooner  or  later,  develop 
a  new  concept  of  popular  government,  in  which  the 
prominent  factor  will  not  be  the  election  of  officials,  but 
rather  that  control  of  organized  public  opinion  over 
the  administration  of  public  affairs  which  is,  after  all, 
the  essential  element  of  a  vigorous  democracy.  On  this 
point  the  lessons  of  foreign  experience  are  clear  and 
unmistakable.  The  administration  of  executive  depart- 
ments in  the  German,  and  particularly  in  the  English 
cities,  shows  a  sensitiveness  to  every  stirring  of  public 
opinion,  which  is  in  marked  contrast  with  the  apparent 
indifference  so  often  shown  in  similar  departments  in 
our  American  municipalities.  The  fact  that  a  head  of 
a  department  is  staking  his  career  on  the  successful 
management  of  one  branch  of  the  public  service  makes 
him  eager  to  meet  every  public  demand.  It  is  clear, 


VALUE    OF    FOREIGN    EXPERIENCE      341 

therefore,  that  if  our  American  municipalities  are  to 
extend  their  functions  through  the  management  of  such 
quasi-public  services  as  street  railways,  gas,  and  electric 
light,  we  must  be  prepared  to  accept  an  administrative 
organization  under  which  the  heads  of  executive  depart- 
ments will  hold  office  during  good  behavior. 

It  is  also  evident  that  if  these  services  are  to  be 
efficiently  performed  we  must  develop  an  organization 
of  the  civil  service  on  a  basis  similar  to  that  of  Euro- 
pean cities.  That  there  is  no  insuperable  obstacle  to  the 
attainment  of  this  end  is  sufficiently  attested  by  the 
rapid  strides  of  the  civil-service  reform  movement  in 
most  of  our  large  cities. 

It  is  important  in  this  connection  to  examine  the 
experience  of  foreign  cities  on  one  of  the  points  most 
strenuously  urged  against  municipal  ownership  and 
operation.  We  are  told  that  this  policy  means  a  dan- 
gerous increase  in  the  number  of  municipal  employees. 
The  danger  that  is  pointed  out  is  twofold.  In  the  first 
place,  the  increase  in  employees  introduces  an  element 
of  political  danger  because  of  the  activity  of  these  offi- 
cials in  the  civic  life  of  the  community.  Although  for- 
eign cities  have  suffered  to  a  very  slight  extent  from 
this  cause,  it  must  be  kept  in  mind  that  the  immunity 
has  been  due  largely  to  the  fact  that  their  civil  service 
has  been  organized  on  a  permanent  basis  and  adminis- 
tered under  the  merit  system. 

The    opponents    of    municipal    ownership    also    lay 
23 


342     PROBLEMS    OF    CITY   GOVERNMENT 

much  emphasis  on  the  fact  that  the  extension  of  munici- 
pal functions  will  mean  not  only  a  corresponding  in- 
crease in  the  number  of  offices,  but  that  the  extrava- 
gance which  characterizes  municipal  operation  will  lead 
to  the  addition  of  a  great  number  of  unnecessary  em- 
ployees to  the  city's  payroll.  It  is  often  charged  that 
this  has  taken  place  in  the  British  cities,  but  all  the 
available  evidence  shows  conclusively  that  this  charge 
is  unfounded. 

A  third  and  equally  serious  question  connected  with 
the  municipal  employment  of  labor  is  the  influence  of 
organized  labor  in  securing  from  municipalities  better 
conditions  than  they  can  secure  from  private  corpora- 
tions and  individuals.  It  is  pointed  out  that  unskilled 
labor  under  municipal  ownership  enjoys  a  position  of 
special  privilege  which  is  unfair  to  the  great  mass  of 
the  laboring  population. 

The  experience  of  every  European  city  shows  that 
the  change  from  private  to  public  ownership  and  oper- 
ation has  always  been  accompanied  by  a  betterment  of 
labor  conditions,  and  that  this  improved  condition  has 
set  a  standard  to  which  other  enterprises  of  a  similar 
character  have  been  gradually  forced  to  conform.  This 
sensitiveness  to  the  demands  of  labor  organizations  may 
place  municipal  industries  at  a  certain  disadvantage 
when  in  competition  with  private  companies,  but  the 
ultimate  effect  on  the  general  labor  situation  is  salutary 
rather  than  otherwise.  In  but  few  instances  have  unrea- 


VALUE    OF   FOREIGN   EXPERIENCE      343 

sonable  demands  been  complied  with,  and  even  where 
this  has  occurred  the  situation  has  usually  corrected 
itself  by  subsequent  readjustments. 

Another  lesson  of  equal  if  not  greater  importance, 
and  as  to  which  foreign  experience  speaks  with  no 
uncertain  voice,  relates  to  the  system  of  municipal 
accounting.  In  every  British  and  Continental  city 
each  public  work  is  regarded  as  a  separate  industrial 
enterprise,  and  the  accounts  are  kept  accordingly.  In 
fact,  if  not  in  law,  the  accounts  of  the  municipal  under- 
taking are  kept  in  exactly  the  same  way  as  if  the  enter- 
prise were  under  private  management.  Until  all  the 
charges  for  repairs,  depreciation,  interest,  and  liquida- 
tion are  met  there  is  no  thought  of  profits.  The  result 
has  been  that  the  industrial  enterprises  in  both  Ger- 
man and  English  cities  have  been  maintained  at  a  high 
point  of  efficiency.  The  besetting  danger  of  municipal 
operation  in  the  United  States  has  been  the  desire  to 
reduce  the  tax  rate  through  the  profits  of  industrial 
enterprises.  This  temptation  has  been  so  great  that  in 
a  number  of  instances  the  efficiency  of  the  municipal 
plant  has  been  destroyed  by  the  desire  to  make  a  large 
part  of  the  gross  income  available  for  general  city  pur- 
poses. The  most  notable  instance  is  the  Philadelphia 
gas  works,  whose  decline  was  not  due  so  much  to  tech- 
nical mismanagement  as  to  the  refusal  on  the  part  of 
the  city  council  to  permit  it  to  be  managed  on  a  busi- 
ness basis.  Gross  profits,  which  should  have  been  used 


for  repairs  and  renewals,  were  used  for  general  city 
purposes.  The  city  council  persistently  refused  to  make 
the  appropriations  necessary  to  keep  the  plant  in  good 
condition.  Unless  our  American  municipalities  are  pre- 
pared to  make  the  system  of  accounting  of  their  indus- 
trial enterprises  as  businesslike  as  that  of  European 
cities,  there  is  little  or  no  hope  that  municipal  owner- 
ship and  operation  can  be  successfully  carried  out. 

A  final  lesson  of  a  negative  rather  than  of  a  posi- 
tive character  relates  to  the  policy  to  be  adopted  in 
fixing  the  cost  of  service  to  the  consumer.  It  has  been 
pointed  out  time  and  again  that  the  industries  usu- 
ally referred  to  as  public-service  industries  occupy  an 
exceptional  position  because  of  the  special  franchises 
or  privileges  necessary  for  their  operation.  While  this 
is  true,  a  far  more  important  fact  is  often  lost  sight  of, 
namely,  that  these  industries  are  capable  of  subserving 
certain  broad  social  purposes,  and  that  it  is  within  the 
power  of  the  municipality  so  to  adjust  the  cost  of  serv- 
ice that  these  larger  social  ends  will  be  attained.  It  is 
one  of  the  commonplaces  of  social  economy  that  the 
transportation  service  is  the  best  means  of  relieving 
congestion  of  population,  and  that  the  gas  supply  can 
be  made  one  of  the  most  effective  means  of  influencing 
the  habits  and  customs  of  the  people.  In  the  transpor- 
tation service  the  plan  adopted  in  most  of  the  large 
European  municipalities  has  been  to  adjust  the  fares 
under  a  zone  tariff,  thus  increasing  the  cost  .of  service 


VALUE    OF   FOREIGN    EXPERIENCE      345 

with  the  increase  in  the  length  of  ride.  Although  this 
has  given  satisfactory  financial  results,  it  has  prevented 
the  municipalities  from  performing  their  greatest  serv- 
ice to  the  social  well-being  of  the  community,  namely, 
to  induce  the  population  to  move  into  outlying  and  less 
congested  sections  of  the  city.  It  is  true  that  the  uni- 
form fare  of  our  American  cities  is  relatively  high,  and 
is  no  doubt  a  considerable  tax  on  the  short-distance 
passenger,  but  it  is  a  tax  which  ultimately  redounds  to 
the  social  welfare  of  the  community  in  contributing  to 
that  more  equable  distribution  of  population  so  neces- 
sary to  social  advance. 

As  regards  the  gas  supply,  it  is  evident  that  a  reduc- 
tion in  the  price  of  gas  so  as  to  permit  the  substitution 
of  the  gas  stove  for  the  coal  stove  is  certain  to  have  a 
far-reaching  influence  on  the  diet  of  the  poorer  classes. 
In  this  respect  the  British  municipalities  have  done 
splendid  service.  The  readiness  with  which  food  is 
heated  on  the  gas  range  as  compared  with  the  effort  to 
start  a  coal  fire  makes  it  possible  to  introduce  a  far 
larger  proportion  of  warm,  cooked  food  into  the  work- 
ingman's  diet.  The  record  of  achievement  of  the  British 
cities  is  an  indication  of  the  tremendous  power  of  the 
city  in  furthering  social  welfare. 

These  are  but  a  few  of  the  many  instances  in  which 
the  municipality  in  the  management  of  its  public-service 
industries  is  able  to  influence  profoundly  the  industrial 
efficiency,  the  social  welfare,  and  the  general  well-being 


346     I^KOBLEMS    OF    CITY    GOVERNMENT 

of  the  community.  Although  the  sura  total  of  actual 
achievement  in  American  cities  is  meager,  the  general 
principle  involved  is  one  of  the  highest  importance; 
the  full  import  of  which  we  have  but  begun  to  ap- 
preciate. 

Whatever  lessons  may  be  drawn  from  foreign  expe- 
rience— and  they  are  numerous  and  important — no  one 
will  contend  that  this  experience  can  do  more  than 
throw  an  interesting  side  light  on  the  problems  that 
confront  our  American  cities.  The  final  choice  be- 
tween private  and  public  ownership  and  operation  must 
be  made  on  the  basis  of  our  own  peculiar  conditions. 
In  this  choice,  factors  which  are  entirely  absent  in  Euro- 
pean countries  will  play  an  important  part.  We  must 
recognize,  in  the  first  place,  that  the  attitude  of  the 
American  people  toward  the  city  is  totally  different 
from  that  which  prevails  in  the  countries  of  Europe. 
With  us  city  government  is  a  negative  rather  than  a 
positive  factor.  We  look  to  it  for  the  protection  of 
life  and  property,  but  it  is  with  considerable  reluctance 
that  we  accept  any  extension  of  function  beyond  this 
limited  field.  In  Europe,  on  the  other  hand,  the  city 
is  a  far  more  positive  force  in  the  life  and  thought  of 
the  people.  The  inhabitants  of  European  cities  look  to 
the  community  in  its  organized  capacity  for  the  satis- 
faction of  new  commercial  needs  as  they  arise.  With 
us  in  the  United  States  the  presumption  is  against  any 
extension  of  municipal  functions,  and  it  requires  con- 


VALUE    OF    FOREIGN    EXPERIENCE      347 

siderable  pressure  to  induce  the  population  to  accept  an 
increase  in  municipal  powers. 

The  immediate  bearing  of  this  contrast  on  the  ques- 
tion under  consideration  is  that  municipal  ownership 
in  the  United  States  is  regarded  as  a  last  resort,  to  be 
used  only  after  all  efforts  to  secure  efficient  service 
through  private  management  have  been  exhausted.  This 
of  itself  is  an  assurance  that  any  experiments  that  may 
be  made  will  be  conservative.  Whatever  our  attitude 
toward  the  question  of  municipal  ownership  and  oper- 
ation, the  country  as  a  whole  is  interested  in  having 
such  experiments  made.  It  is  a  grave  mistake — espe- 
cially on  the  part  of  the  representatives  of  the  public- 
service  corporations — to  decry  such  movements  as  so- 
cialistic and  as  foredoomed  to  failure. 

We  must  also  bear  in  mind  that  in  most  of  our  large 
cities  municipal  ownership  is  practically  impossible. 
Given  the  numerous  constitutional  restrictions,  the  finan- 
cial resources  of  our  cities  are  now  so  limited  that  the 
repurchase  of  franchises  belongs  to  the  field  of  academic 
discussion  rather  than  to  practical  politics.  It  is  pos- 
sible that  we  shall  find  a  way  out  of  this  difficulty 
through  constitutional  amendments  which  shall  distin- 
guish between  unproductive  and  reproductive  enter- 
prises, but  it  is  evident  that  the  sentiment  of  our  Amer- 
ican communities  is  still  so  strongly  opposed  to  an 
increase  in  municipal  indebtedness  that  even  this  plan 
is  not  likely  to  receive  very  general  acceptance. 


348  PROBLEMS  OF  CITY  GOVERNMENT 

In  spite  of  all  these  difficulties  and  dangers,  there 
is  every  indication  that  the  sentiment  in  favor  of  mu- 
nicipal ownership,  and  even  of  municipal  operation, 
will  acquire  increasing  force  with  each  year,  due  pri- 
marily to  the  influence  of  one  of  the  factors  to  which 
little  attention  has  been  given,  namely,  the  opposition 
to  monopoly.  We  are  not  concerned  in  this  connec- 
tion with  the  justification  for  this  feeling.  That  it  is 
an  important  factor  in  the  situation  is  attested  by  the 
popularity  of  every  political  platform  that  emphasizes 
opposition  to  monopoly.  In  order  to  gauge  the  strength 
of  this  feeling  at  its  true  value  we  must  always  bear 
in  mind  that  the  American  people,  in  inheriting  the 
traditions  of  the  English  common  law,  also  inherited 
that  opposition  to  special  privilege  upon  which  some  of 
the  most  distinctive  features  of  the  common  law  rest. 
This  feeling  has  been  intensified  in  the  United  States 
by  the  gradual  consolidation  of  competing  public-service 
corporations.  Unless  the  signs  of  the  times  are  funda- 
mentally misleading,  there  is  every  indication  that  this 
opposition  to  monopoly  will  force  some  of  our  Amer- 
ican communities  to  override  all  the  difficulties  and  dan- 
gers of  municipal  ownership  and  operation.  Whether 
justified  or  not,  there  is  a  growing  body  of  opinion  that 
the  people  of  our  cities  will  in  no  other  way  escape  the 
tyranny  of  local  monopolies. 

While  it  is  true  that  the  experience  with  municipal 
ownership  and  operation  in  the  United  States  has  not 


VALUE    OF  «FOREIGN    EXPERIENCE      349 

been  uniformly  encouraging,  it  is  also  true  that  any 
experiments  that  may  be  made  now  will  be  carried  on 
under  more  favorable  conditions  than  at  any  previous 
period.  Our  cities  are  far  better  organized  than  they 
were  fifty  years  ago.  Their  administrative  system  is 
more  stable,  and  public  opinion  is  far  more  exacting 
in  its  control  over  administrative  departments.  Munic- 
ipal operation  of  the  public-service  industries  involves 
some  dangers  and  many  new  responsibilities,  but  it  is 
not  at  all  unlikely  that  in  the  effort  to  meet  these  new 
responsibilities  we  shall  place  the  civic  life  of  our  Amer- 
ican cities  on  a  higher  plane.  Civic  improvement  in 
the  United  States  has  always  followed  in  the  wake  of 
new  responsibilities,  and  there  is  every  indication  that 
the  experience  with  municipal  ownership  will  prove  no 
exception  to  the  rule. 

REFERENCES 

DARWIN,  L.     "Municipal  Trade."    New  York:  Button,  1903. 
DOLMAN,  F.     "Municipalities  at  Work."    London:  Methuen, 

1895. 

HOWE,  F.  C.     "The  British  City."    New  York:  Scribner's,  1907. 
—    "Municipal  Ownership  in  Great  Britain."  Bulletin  U.  S. 

Bureau  of  Labor,  1906. 
MEYER,  H.  R.     "Municipal  Ownership  in  Great  Britain."    New 

York:  Macmillan,  1906. 


INDEX 


Amendments,  122-26. 
Assembly,  18,  51,  180. 
Athens,  14-20,  22.  See  also  City. 

Bethnal  Green  improvement,  85. 

Bibliography,  13,  42,  43,  61,  94, 
95,  114,  140,  166,  193,  207, 
240,  270,  280,  329,  349. 

Birmingham,  gas  in,  219,  253, 
255,  260,  261. 

Birth  rate,  64,  65. 

Board  of  Estimate  and  Appor- 
tionment, 180. 

Bridges  require  grant  of  exclu- 
sive privileges,  157. 

Bullitt  Bill,  244. 


California,    cities    in,    classifica- 
tion of,  129;  charters  of,  134. 
Capitalization,    217,    236,    324, 

325. 
Cases  cited: 

Ayar's  Appeal,  128. 
Baltimore  vs.  Radecke,  151. 
City     of     Crawfordsville     vs. 

Braden,  144. 
City  and  Suburban  Railway 

Co.  vs.  Savannah,  163. 
Commissioners    of    Northern 
Liberties  vs.  Gas  Company, 
149. 
Czarniecki's  Appeal,  155. 


Douglass  vs.  Commonwealth, 
144. 

Filbey  vs.  Combe,  144. 

Grossman  vs.  City  of  Oak- 
land, 154. 

Hale  vs.  Houghton,  144. 

Hamilton  County  vs.  Mighels, 
117. 

Hanlon  vs.  South  Boston 
Horse  R.  R.  Co.,  163. 

Howard's  Appeal,  161. 

Jackson  County  Horse  R.  R. 
Co.  vs.  Interstate  Rapid 
Transit  Railway  Co.,  159. 

Johnson  vs.  Philadelphia,  144. 

Lehigh  Water  Company's  Ap- 
peal, 160. 

Ex  parte  Lewis,  184. 

Long  vs.  Duluth,  158. 

Louisiana  vs.  Heidenlain,  163. 

Mankato  vs.  Fowler,  156. 

Marion  vs.  Chandler,  157. 

Mayor  vs.  Winfield,  151. 

Metzger  vs.  Beaver  Falls,  162. 

Milwaukee  Electric  Light  and 
Transportation  Co.  vs.  Mil- 
waukee, 164. 

Munn  vs.  Illinois,  164,  212. 

New  Orleans  vs.  Blineau,  152. 

New  Orleans  City  and  Lake 
R.  R.  Co.  vs.  New  Orleans, 
163. 


351 


352 


INDEX 


Cases  cited — continued 

North  Birmingham  Street 
Railway  Co.  vs.  Calder- 
wood,  163. 

Oren  vs.  Pingree,  145. 

People  vs.  Guggenheimer,  147. 

Perdue  vs.  Ellis,  157. 

Perkins  vs.  Slack,  133. 

Red  Star  Steamship  Co.  vs. 
Jersey  City,  150. 

Spaulding  vs.  Lowell,  142. 

State  vs.  Cincinnati  Gas  Com- 
pany, 146. 

Stone  vs.  Farmers'  Loan  and 
Trust  Co.,  213. 

Wadleigh  vs.  Oilman,  144. 

Western  Savings  Fund  Co.  vs. 
Philadelphia,  244. 

Wheeler  vs.  Philadelphia,  127. 

White  vs.  Meadville,  161. 

Yates  vs.  Milwaukee,  154. 
Charter,  36,  37,  49, 121, 134, 135, 

179. 

Charter  Board  of  Missouri,  49. 
Checks  and   balances,  45,  101, 

102,  183. 

Church,  influence  of,  90,  92,  93. 
Citizenship,  10,  16,  22,  29,  30. 
City.  "The  Ancient,  the  Medi- 
aeval, and  the  Modern  City," 
14-43.  The  city  the  unit  of 
Greek  life,  14;  Athens — de- 
mocracy, 17;  manners,  18; 
citizenship,  19;  Italian  cities, 
20;  Rome  dominates  Italy, 
21 ;  political  importance  of 
Italian  cities,  22;  expansion 
of  Rome,  24 ;  the  city  stand- 
ard of  life,  25;  social  amuse- 
ments in  Rome,  26;  medi- 
aeval cities,  27;  the  city  and 


the  state,  28;  special  city 
rights,  29;  the  modern  city, 
a  branch  of  the  state,  30; 
breakdown  of  special  priv- 
ileges, 31 ;  guilds,  32,  33;  de- 
cline of  towns  in  fifteenth 
century,  34;  strong  central 
governments,  35;  effect  on 
cities,  37;  the  modern  city 
37;  limitation  of  public 
authority,  39;  the  city  a 
necessary  evil,  40;  the  city 
a  larger  factor  in  Europe 
than  in  America,  41 ;  the 
needs  of  city  government, 
42. 

"  City  Government  and  Demo- 
cratic Ideals,"  194-207.  Is 
government  a  business  prob- 
lem? 194,  195;  early  Ameri- 
can view  of  government, 
195-97;  democratic  govern- 
ment and  the  city,  198; 
discouraging  present  out- 
look, 199,  200;  decline  of 
council,  201 ;  concentration, 
202;  bad  results  of  "checks 
and  balances,"  203;  effect 
of  political  tradition,  204; 
necessity  of  concentration, 
205,  206. 

"The  City  in  History,"  1-13. 
The  city  the  center  of  civili- 
zation, 1-3;  rural  civilization 
simple,  4 ;  religion  the  first 
group  principle,  5;  fertile 
lands  make  cities  possible, 
5-7;  no  cities  before  agri- 
culture, 8;  cities  develop 
patriotism,  9;  division  of 
labor,  10;  city  and  educa- 


INDEX 


353 


tion,  11;  the  city  and  the 
moral  standard,  12,  13. 

"The  Political  Consequences 
of  City  Growth,"  96-114. 
City  in  politics,  96,  97;  den- 
sity of  settlement  and  in- 
creased regulation,  98,  99; 
necessity  of  increased  gov- 
ernmental activity,  99,  100; 
new  attitude  toward  govern- 
ment, 101 ;  early  faith  in 
"checks  and  balances,"  102, 
103;  advantages  of  concen- 
trated power,  103,  104; 
public  opinion  and  the 
cities,  105,  106;  the  cities 
in  revolution,  107;  the  city 
a  dissolvent  force,  108;  fear 
of  the  dominance  of  cities, 
109;  constitutional  limita- 
tions, 110;  European  ex- 
perience, 111,  112;  appor- 
tionment in  England,  113, 
114. 

"The  Position  of  the  City  in  the 
American  Political  System," 
115-40.  Relation  of  city 
and  state,  115;  law  of  pri- 
vate corporations,  116; pub- 
lic corporations,  117;  pur- 
poses of  corporations,  118; 
constitutional  protection  to 
personal  and  property 
rights,  119;  judicial  inter- 
pretation, 120:  municipal 
home  rule,  121,  122;  guar- 
.antees  of  municipal  home 
.  rule,  122:  futility  of  con- 
stitutional amendments. 
123,  124;  classification  of 
cities,  126-28:  judicial  in- 


terpretation, 127;  evasion 
of  constitutional  provisions, 
129-31 ;  absolute  prohibi- 
tions a  failure,  132;  Phila- 
delphia's experience,  133; 
present  movement  for  mu- 
nicipal home  rule,  134,  135; 
changes  suggested,  137, 138. 
"The  Social  Consequences  of 
City  Growth,"  62-95.  Mi- 
gration to  cities,  62;  rapid 
growth  of  cities,  63, 64 ;  cities 
and  depopulation,  64,  65; 
monotony  of  country  life, 
66;  increased  pleasures  in 
cities,  67;  legislation  to  op- 
pose city  growth  unavailing, 
68, 69 ;  elimination  of  the  un- 
fit, 70;  crimes  in  cities,  71; 
interdependence  in  cities, 
72;  incomplete  adaptation 
to  city  environment,  73-76; 
individual  rights  and  gen- 
eral good,  77,  78;  home 
life,  78;  public  affairs  and 
the  home,  79,  80;  changed 
standards  of  life  and  con- 
duct, 81;  increased  oppor- 
tunity for  diversion,  82, 
83;  American  and  Euro- 
pean cities  contrasted,  83- 
85;  the  results  of  city  ser- 
vices, 86,  87;  city  life  and 
social  standards,  87,  88; 
present  unsatisfactory  city 
conditions,  88,  89;  social  in- 
stincts hi  city  life,  90-92; 
the  church  and  the  club  in 
city  life.  93;  complexity  of 
city  life,  94. 
City-states,  16,  17,  23. 


354 


INDEX 


Civil  service,  339,  341. 
Classification  of  cities,  126-32. 
Club,  influence  of,  90,  92,  93. 
Cologne,  street  railways  of,  294- 

97,  306-10,  316,  317. 
Commissions,  state,  133;  plan  of 

government  of,  190. 
Corporations,  public,   117,   119, 

142,  148;  private,  117,  142, 

148;  modern  municipal,  118; 

public  quasi,  118. 
Counties,  117,  118. 
Crimes,  70. 

Death  rate,  63,  65. 
Democracy,  17,  31,  94. 
Des  Moines  plan,  183,  185. 
District  representation,  46. 
Docks  and  wharves,  citation  of 
case,  154. 

Electric  light,  144,  222-24. 
England,  County  Councils  Act  of, 
68;  representation  in,  112. 

Ferries  require  grant  of  exclu- 
sive privileges,  157,  208. 

Finance,  180,  201,  301-11,  343. 

France,  population  of,  63;  repre- 
sentation in,  112. 

Franchises,  157  et  seq.,  215-18, 
225,  233-40,  284-301,  335. 

Frankfort,  street  railways  of, 
286-90,  302-6,  315,  316. 

Free  competition,  100. 

Freeholders,  Board  of,  49,  134. 

Galveston  plan,  183,  184. 
Gas.     "The    Municipality    and 
the  Gas  Supply,   as    Illus- 


trated by  the  Experience 
of  Philadelphia,"  241-70. 
Philadelphia's  gas  works 
leased,  241 ;  was  city  man- 
agement a  failure?  242,  243; 
historical  sketch  of  city 
operation,  244,  245;  public 
lighting,  246;  deficiency  of 
administration,  247;  de- 
fects, 248-50;  politics  and 
the  gas  works,  252,  253; 
weakness  of  city  manage- 
ment, 254,  255;  circum- 
stances of  the  lease,  256, 
257;  terms  of  the  lease,  251, 
258;  terms  deceiving,  259, 
260;  comparison  with  Brit- 
ish experience,  261 ;  gas 
works  under  private  man- 
agement, 262,  263;  criticism 
of  the  lease,  264,  265;  Glas- 
gow's experience,  266,  267; 
elimination  of  corruption, 
268;  Philadelphia's  example 
discouraging,  269. 
Gas,  price  of,  87,  146,  219,  246, 
260,  345;  in  Great  Britain, 
218-20,  345;  Northern 
Liberties  Gas  Co.,  citation 
of  case,  149;  United  States, 
municipal  plants  in,  221, 
222;  in  Philadelphia,  241- 
70. 

Gas  Trust,  120,  244. 

Germany,  representation  in,  1 11 ; 
street  railways  of,  281-329. 

Glasgow,  street  railways  of,  86, 
227-30;  gas  in,  87,  219, 
260,  261 ,  265. 

Greece,  14-20.    See  also  City. 

Guilds,  32  et  seq. 


INDEX 


355 


Home,  influence  of,  41,  55,  78, 

90. 
Housing  of  Working  Classes  Act, 

85. 

Italy,  20-26.     See  also  City. 
Kansas  City,  charter  of,  49,  134. 

Labor,  2,  10,  71,  321,  342. 

Labor  colonies,  69. 

Law,  English,  36;  poor,  69,  70; 

criminal,    70;   public,    116; 

Roman,   116;  private,  116,   i 

118;  corporation,  116,  121,   j 

141;  common,  116,  158,  208,   j 

348;  railroad,  233. 
Leeds,  gas  in,  87;  street  railways  i 

of,  227,  229. 
Leisure,  58,  67. 
Liberty,  74,  98. 
Licenses,  144,  156,  157,  235. 
Liverpool,    gas   in,    219;    street 

railways  of,  227-30. 
Local  self-government,  23,  137. 
London,  County  Council  of,  85; 

representation  in,  112;  gas 

in,  219. 

Manchester,  gas  in,  87,  219,  260,   I 

261 ;  street  railways  of,  227- 

30. 
Massachusetts,     street     railway  • 

capitalization,  217,  236;  gas  . 

in,  254. 

Military  service,  influence  of,  68. 
Misdemeanors,  70. 
Missouri  charter,  49,  134. 
Munich,  street  railways  of,  290- 

94,  306,  313-15. 
Municipal  home  rule,  119  etseq. 


Municipal  ownership.  "Funda- 
mental Principles  Involved 
in  Municipal  Ownership," 
271-80.  The  city's  con- 
trol of  public  works,  271, 
272;  municipal  management 
may  be  superior  to,  272, 
273;  applicability  of  Euro- 
pean experience,  274;  pub- 
lic opinion  and  efficiency, 
275,  276;  present  outlook, 
277;  the  city  as  a  social  in- 
strument, 278,  279. 

"Municipal  Ownership  and 
Operation  of  Street  Rail- 
ways in  Germany,"  281- 
329.  Street  railways  in 
Germany,  281;  gas  plants 
in  Germany,  282;  historical 
sketch  of,  284;  Frankfort 
and  public  services,  286-89; 
Munich,  291-94;  Cologne, 
294-97;  Niirnberg,  298- 
300;  financial  results  of 
municipal  operation,  301- 
10;  fares  under  municipal 
operation,  311-19;  char- 
acter of  service  under  mu- 
nicipal operation,  319-23; 
comparison  and  conclusion, 
323-28. 

"Municipal  Ownership  and 
Operation:  the  Value  of 
Foreign  Experience,"  330- 
49.  Value  of  foreign  ex- 
perience, 330,  331;  public 
services  and  city  indebted- 
ness, 332;  public  service 
corporations  and  corrup- 
tion, 333;  in  politics,  334; 
reform  in  franchise  grants, 


356 


INDEX 


335;  lessons  from  American 
experience,  335,  336;  from 
European  experience,  337; 
civil  service  system,  339; 
few  elective  officers  in  Euro- 
pean public  services,  340, 
341 ;  organized  labor  and 
public  services,  342;  munic- 
ipal accounting,  343;  how 
to  fix  the  cost  of  service, 
344 ;  American  conditions 
must  determine  method  of 
operation,  346;  constitu- 
tional debt  restrictions  in 
American  cities,  347,  348; 
public  sentiment  in  favor 
of,  348,  349. 

Municipal  problem,  "The  Na- 
ture of  the  Municipal  Prob- 
lem," 44-61.  Form  of  city 
government,  45;  bicameral 
government  not  suitable, 
lack  of  responsibility,  46; 
political  and  technical  quali- 
fications of  officers,  47,  48; 
form  of  government  and 
municipal  progress,  49,  50; 
confidence  in  machinery,  50 ; 
abandonment  of  bicameral 
system,  51 ;  city  problems  in 
connection  with  politics,  53, 
54;  the  city  as  an  economic 
and  social  unit,  not  politi- 
cal, 55-58;  use  of  leisure  by 
city  classes,  58.  59;  higher 
type  of  civic  life  in  cities, 
60. 

Municipal  Research  Bureau,  191 , 
276. 

Municipality.  ' '  The  Legal  Powers 
of  the  Municipality,"  141- 


66.  Scope  and  limits  of  mu- 
nicipal powers,  141 ;  judicial 
interpretation  of  powers  of 
city,  142,  143;  increased  lib- 
erality of  interpretation, 
1 44, 1 45 ;  extent  of  ordinance 
power,  146;  rules  set  by 
courts,  149-57;  conflict  of 
decisions,  157,  158;  strict 
construction  of  all  grants  to 
and  by  cities,  160;  conse- 
quences thereof,  162;  Amer- 
ican experience,  163,  164; 
reasons  for  restrictions,  165; 
care  in  franchise  grants, 
165. 

"The  Municipality  and  the 
Gas  Supply,  as  Illustrated 
by  the  Experience  of  Phil- 
adelphia." See  Gas. 

"The  Organization  of  the  Mod- 
ern Municipality,"  167-93. 
Changes  in  organization, 
167;  historical  develop- 
ment, 168-71 ;  present  pre- 
vailing organization,  173, 
174;  appointments  by  the 
mayor,  175;  legislative  de- 
partments, 176;  politics  and 
the  state,  177;  defects  in 
organization,  178;  the  coun- 
cil in  city  government,  179; 
lessons  to  be  learned,  180, 
181;  present  tendency,  182, 
183;  new  plans  of  city 
government,  183-86;  in- 
itiative and  referendum, 
188,  189;  extent  of  new 
movement,  190,  191 ;  Munic- 
ipal Research  Bureau,  191, 
192. 


INDEX 


357 


Negroes,  citation  of  case,  151. 

New  York,  government  of,  51 ; 
representation  in,  109; 
classification  of  cities  of, 
132;  franchises,  234. 

Nuisances,  regulation  and  sup- 
pression of,  citation  of 
cases,  152,  154. 

Niirnberg,  street  railways  of, 
297-301,  310,  311,  319. 

Ohio,  classification  of  cities  of, 

129. 
Ordinance  power,  146  et  seq. 

Paris,  city  environment  of,  84; 
influence  upon  national  life, 
106. 

Parish  Councils  Act,  69. 

Pennsylvania,  representation  in, 
109;  classification  of  cities 
of,  127,  131. 

People's  Palace,  82. 

Personal  rights,  119. 

Philadelphia,  in  classification  of 
cities,  127,  131;  gas  in,  217, 
241-70. 

Police  power,  144-46,  163. 

Political  parties,  108  et  seq. 

Poor  law,  69,  70. 

Population,  of  Rome,  24;  of 
London,  27;  of  France,  64. 

Property  rights,  29,  71,  98,  119. 

Public  utilities.  "The  Relation 
of  the  City  to  Public  Util- 
ities," 208-40.  Public  ser- 
vices and  the  public,  208; 
monopoly  and  dependence, 
209;  monopolistic  nature  of 
public  services,  210,  211; 
charters  and  amendments, 
24 


212;  public  service  corpora- 
tions and  politics,  213; 
franchises  and  regulation  of 
charges,  214;  the  city  and 
public  service  corporations, 
215,  216;  over-capitaliza- 
tion and  interest  payments, 
217;  gas  service — public  and 
private,  218-20;  municipal 
gas  plants  in  United  States, 
221 ;  electric  light  service  in 
United  States,  222,  223; 
street  railways  in  Britain, 
225-29;  in  America,  231: 
constitutional  limitations 
on  grants,  232, 233;  methods 
of  granting  franchises,  233, 
234 ;  percentage  of  gross  re- 
ceipts favored,  235;  eva- 
sions by  street  railway  com- 
panies, 236;  duration  of 
franchises,  237,  238;  prin- 
ciples advocated  in  granting 
franchises,  239. 

Referendum,  189. 

Reform,  municipal,  53;  Prussian, 
68;  English  acts  of,  113;  in 
franchise  grants,  335. 

Religion,  5. 

Representation,  46,  109  et  seq. 

Richmond,  Va.,  gas  in,  221,  235. 

Rome,  20-26.     See  also  City. 

Saloon,  influence  of,  81. 
Salvation  Army,  citation  of  case, 

149. 

Sanitation,  72. 
Sheffield,  street  railways  of,  86, 

227;  gas  in,  219. 
Social  imitation,  3,  11,  12. 


358 


INDEX 


Steam  engines  and  boilers,  cita- 
tion of  case,  152. 

Street  railways,  fares  of,  86,  164, 
227,  311-19,  344;  car  li- 
cense. 144,  235;  municipal 
operation  not  exercise  of 
police  power,  145;  fran- 
chises, 159,  225,  233-40, 
284-301,  326,  335;  capitali- 
zation, 217,  236,  324,  325; 
Great  Britain,  225-31;  ac- 
counting, 228 ;  wages  of  em- 
ployees, 230,  321,  322; 
United  States,  231-40; 
municipal  ownership  and 
operation  of,  in  Germany, 


281-329;  financial  condi- 
tions, 301-11;  service  un- 
der municipal  management, 
319. 

Tenements,  73,  87. 
Town,  7,  8,  27,  32. 
Toynbee  Hall,  82. 
Tweed  Ring,  120. 

University,  influence  of,  92. 

Washington  charter,  135. 
Water  supply,  144, 147, 150,  160. 
Water  fronts,  83. 
Whigs,  101,  102,  103. 


(1) 


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By  EMORY  R.  JOHNSON.  Ph.D.  i2mo.  Cloth,  $r.^o  net ;  postage 
additional. 

Credit  and  Its  Uses. 

By  W.  A.  PRENDERGAST.  I2mo.  Cloth,  $1.50  net ;  postage,  12 
cents  additional. 

D.    APPLETON    AND    COMPANY,     NEW     YORK. 


APPLETONS'  BUSINESS  SERIES 
Funds  and  Their  Uses. 

A  Treatise  on  Instruments,  Methods,  and  Institutions 
in  Modern  Finance.  By  Dr.  F.  A.  CLEVELAND,  of  the 
Wharton  School  of  Finance,  University  of  Pennsylvania. 
Illustrated.  i2mo.  Cloth,  $1.25  net;  postage,  12  cents 
additional. 

Dr.  Cleveland's  purpose  is  to  give  a  preliminary  survey,  to  mark 
out  the  ground,  and  establish  lines  for  future  development.  Look- 
ing upon  the  subject  as  one  which  has  to  do  with  the  getting  and 
spending  of  funds  for  private  enterprise,  the  materials  are  grouped 
around  three  central  ideas,  viz.,  (i)  What  are  Funds?  (2)  How  Funds 
are  Obtained  ;  and  (3)  Institutions  and  Agents  employed  in  Funding 
Operations. 

The  chapters  are  replete  with  engravings  of  the  financial  instru- 
ments discussed.  In  obtaining  illustrations  of  notes,  drafts,  docu- 
ments, bills,  private  and  corporate  bonds,  trust  agreements,  and  so  forth, 
actual  bills  and  securities  on  the  market  have  been  largely  used.  Over 
one  hundred  and  fifty  exhibits  are  employed  to  illustrate  the  tey*. 

''A  financial  library  in  itself." — New  York  Press. 

"  Full  of  helpful  information." — St.  Paul  Despatch. 

"A  work  of  great  practical  value,  and  one  that  should  be  in  every  library.1'- 
Portland  Telegram. 

"  It  is  not  only  a  highly  instructive  work,  but  it  is  also  one  of  great  interest." — 
Indianapolis  Journal. 

"  Helpful  to  business  men  and  helpfully  instructive  to  all  men  who  would  be 
well  informed." — New  York  World. 

"  The  book  is  especially  valuable  for  its  clear  and  detailed  statement  of  the  best 
business  usages." — Chicago  Record-Herald. 

"  It  is  one  of  the  simplest  and  best  treatises  on  modern  business  transactions  that 
has  ever  been  published."— Spokane  Spokentan  Review. 

"  Investors  will  be  able  to  use  their  bankers,  brokers,  or  lawyers  more  intelli- 
gently by  learning  what  it  teaches." — The  Rocky  Mountain  News. 

"  Professor  Cleveland  has  prepared  a  work  that  is  not  too  technical  for  the  ordi- 
nary reader  to  understand,  and  yet  it  is  so  comprehensive  that  every  business  man 
is  likely  to  find  it  a  most  valuable  possession." — Milwaukee  Sentinel. 

"Dr.  Cleveland  is  almost  a  pioneer  in  this  class  of  literature,  and  the  present 
volume  will,  for  this  reason,  be  found  of  the  utmost  value  in  a  day  when  financial 
organization  and  the  manipulation  of  finances  has  come  to  play  so  large  a  part  in 
the  business  life  of  the  nation." — Pittsburg  Chronicle-Telegraph. 

"The  ambitious  clerk,  who  has  to  act  for  his  employer  under  instructions  which 
he  does  not  always  find  perfectly  intelligible,  and  which  of  necessity  leaves  more  or 
less  to  his  discretion,  will  find  Professor  Cleveland's  book  the  basis  of  a  liberal  busi- 
ness education,  and  if  he  will  familiarize  its  contents,  and  keep  up  with  what  is 
going  on  in  the  world  of  business  and  finance  by  following  the  daily  reports,  he  will 
quickly  gain  a  knowledge  which  will  have  a  money  value,  and  which  cannot  fail  to 
attract  the  attention  of  his  principals." — New  York  Times  Saturday  Review. 

D.    APPLETON    AND    COMPANY,    NEW    YORK. 


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